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Sulabh Kulshrestha (Sr. Engg)     07 June 2012

Company not paying complete salary mentioned on appoinment l

 

Dear Sir,

I am working in my current organization since jan 11, and as mentioned on CTC of Rs. 5.22 Lacs, Rs 1.20 Lacs was my incentive i.e. 10k monthly. Right now they are paying me only Rs 4.02 Lac and they are not responding for incentive part. Even after my repeated requests & mails no one is bothered if that is to be given or not.

Also under terms and conditions they have mentioned incentive payable as per performance of individual, and after repeated follow-ups they are also not giving my targets. I know I have a legal right to get my complete CTC.

I would like to ask 2 question here

1.       What best I can do to get my performance pay. (that has been 0 as on date)

2.       What kind of legal procedure should I go for as such big organizations have enough armory in terms of lawyers and corporate links.

Regards,

Sulabh



Learning

 18 Replies

Kumar Doab (FIN)     07 June 2012

You have posted that company has not issued performance targets or performance objectives for being eligible to get performance pay/incentives.

You may write to your appointing authority for supplying you the performance targets and complete terms and conditions. If you are sure that you have performed to the company standards and are eligible you may mention the details and request for supplying you the performance pay/incentives.

Employee should obtain everything that is mentioned in appointment letter and annexure mentioned in appointment letter immediately upon joining.

Sulabh Kulshrestha (Sr. Engg)     07 June 2012

Having already said that I have requested same in written (My targets with KRA & my incentive both) from my boss and head of department their has been no response except once my boss said I don't have enough experience in terms of years (1 year and 3 months in my case at time of joining) and their are many others with more than 20+ years of experience and they are earning less...or they use harsh language to supress me.

And also I have a bond of 2 years that is going to end coming january..I am not left with much options but to cope up with this nonsense.

I understand you must be considering my performance level before you responded... I can say for sure I am doing my job well in time whatever has been asked of me...Give me the best solution under these circumstances...and also u mentioned I should get what ever has been mentioned in my appointment letter...my question what if its not not being fulfilled , what options do I have any legal?

Kumar Doab (FIN)     07 June 2012

Having already mentioned that, you may approach your appointing authority, therefore if line management does not respond, you can approach good offices of appointing authority, MD, CEO, Chairman, and Head-HR.

Usually good companies have Grievance Redressal System. Employee can escalate to this system.

Your performance level was not thought of as if any employee wants incentives he shall clamor for it only if he has performed.

It is felt that the company is not paying you less than the wages/salary expressed in your appointment letter. You could rake up the issue if your wages were not being paid.

The company has neither issued you any volume/revenue/performance targets nor any KRA's. Hence company can not ever state that you have underperformed.

You are being paid higher than very old employees of the company. Has company issued some targets to other employees, and are they earning any incentive? Company may decide to issue you higher or very high targets. You may take a stand that targets may be issued in line with your vintage and experience in the company and thus get reasonable targets. You may highlight you are delivering performance and you may relate to employees with high vintage and point out that your performance is equally good/better and thus should get incentives.

It is felt that company has decided to not to bear cost more than your salary and that is why your line management’s response is cold.

You have signed a bond for 2 years. May be the conditions mentioned in your bond are severe/tough.

If you want to you may approach your line management again and then good offices.

Remain careful. It is appreciated that you want to be rewarded for your performance by earning incentives however it felt that your comapny has invented another smart way of making pass on the employee.

It is felt that other than persuasion you may not be able to rake up  legally.

 

Valuable advice of learned experts/members is sought.

Sulabh Kulshrestha (Sr. Engg)     08 June 2012

Yes I have been to COO and discussed same issue and all I got in response was ignorance & some blame to HR while typing appointment letter..I can't escalate same issue any further as their is restricted entry with MD & Chairmen. And do remember what I have learnt performance pay is never given as part of CTC...whereas it is in my case.

and also while accepting offer letter from same org. I did crosschecked for the incentive part over mail.

I suppose I already stand at the place where u have guided me ..Thanks Any way!! Actually I was seeking for any legal advice.

AKSHANSH SINGHAL (ADVOCATE)     10 June 2012

Hi , 

1. Please do all the communications through Registered Post.

2. Do ypu  have copy of your appointment letter and offer letter , what exactly the terms therein.

3. Write a detailed letter to the Senior level officials marking a copy to the person holding ur incentives.

4. You can serve legal notice for the greivance and asking to state the reasons for non-payment of ur money.

Also , reading above communication which mentioned above is miss the companys version. U can seek the help of ur colleagues to get to knw the actual reason. Is there any possibility that compant  overall is performing low...! with lack of information  regarding actual terms and conditions , no one can guide u precisely.. it is advisable to seek legal advice from any local lawyer dealing in related matters.

 

 

Akshansh

Jaipur

Sulabh Kulshrestha (Sr. Engg)     12 February 2013

Yes I do have everything in writing and all communications from my side are through written mails. Including few of them voice recorded in my cell phone. But no one has responded to those mails its just my side communication requests.

Yes I understand this is all one sided(my side) conversation and there is no reasoning from company side. I went through all documents and offer letter again and only trick they have mentioned is "Incentive as per company policy and performance of individual" in offer letter. But still I must ask where is my KRA...and dispite surviving for 2 years and 2 months haven't I performed even 10% of my tasks? 

I, am about to switch my job in very good organization but the problem still remains with the new employer as they are not considering offer letter as my actual CTC, and demanding me of salary slips where I recieved my incentives. What the hell of crap I am into.

 

Kumar Doab (FIN)     12 February 2013

Such matters are best resolved by applying rapport, goodwill and exceptional levels of persuasion, persistence, negotiation, reasoning skills while in employment.

Kindly consult elders in the family, competent and experienced well wishers, labor consultant, lawyer/law firm specializing in service matters and proceed under expert advice.

Some employees by the nature of their position, proximity to sensitive information,or rapport acquire some kind of handle on employer. If you have such a handle you may apply it and resolve the situation in your favor.

You have posted that:

--“they have mentioned is "Incentive as per company policy and performance of individual" in offer letter.”

The incentive and company policy is stated in offer letter/appointment letter.

The policy should be well defined, kept in knowledge domain of the employees and circulated to employees by effective means of communication e.g. email, redg. post…..

Since it is stated in offer letter/appointment letter you should submit a representation under acknowledgment to good offices of company personnel who has signed the offer letter/appointment letter and stake a claim to amount of Rs.10000/pm or Rs1.20 Lac/pa for each year of your service.

 

You should maintain that the targets were assigned and achieved by you.

 

 

 

You alone shall have to see how would you manage it.If the compnay states no targets were ever issued hence no incentive is paybale then how would you manage it?

 

THE PAYMENT OF WAGES ACT, 1936

2. Definitions.-

3*[(vi) "wages" means

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);

(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

 

 

You may write to good offices of your appointing authority, MD, Chairman with a copy to Head-HR and request to supply you the certified copy of standing orders if these are framed or model standing orders as applicable to the company and affirm to pay the amount of payment fixed by company and also service rule book for employees, HR policy, severance policy, incentive policy, incentive circular,exit policy etc…..

You may also add that company should affirm in writing if no standing orders are applicable to it and your designation and you may proceed as per reply of the bank or if bank maintains a studied silence.

IESO Act applies to a company to which Payment of Wages Act applies.

Model Standing Orders:

11.  Payment of wages.--, 13.     Termination of employment,  15.      Complaints,  17.   Liability of 17[employer, 18.               Exhibition of standing orders.—

 

Your company might be covered under SE Act and bank should display act near entry/gate on notice board (check and confirm).

e.g. SE Act Delhi:

19.  TIME AND CONDITIONS OF PAYMENT OF WAGES.

20.  DEDUCTIONS WHICH MAY BE MADE FROM WAGES.

21.  CLAIMS RELATING TO WAGES

41.  WILFULLY MAKING FALSE ENTRIES

IESO Act, Model Standing Orders, SE Act may be available at the Dept. of Labor website of your state or the latest version can be bought from the market.

 

It shall be appropriate to show the standing orders, appointment letter and all other relevant docs, email, records etc. to a competent and experienced labor consultant/service lawyer specializing in such matters, and proceed under expert advice of your lawyer.

Designation alone does not decide employee is a workman or not. Your lawyer may ask you a set of structured questions and may opine that you fall within the category of workman or you may get some relief under SE Act/IESO Act/ID Act or you may have to agitate in civil court.


Attached File : 143023127 model%20standing%20orders.doc, 143023127 delhi shops & establishments act, 1954.pdf, 143023127 payment of wages act 1936.pdf downloaded: 172 times

Sulabh Kulshrestha (Sr. Engg)     20 February 2013

Under such circumstances, will it be recommended to go for consumer forum/court.

 

Where do I find best lawers in this field in Hoshiarpur Punjab?

Kumar Doab (FIN)     20 February 2013

If you wish to avail the services of a LCI lawyer you can conduct search at:

 

https://www.lawyersclubindia.com/lawyers_search/#.USStGjf3S8A

 

Your near and dear ones can also guide you to a competent and experienced labor consultant/service lawyer. You can also make inquiries with Dist. Bar Association at the location cited by you. In each city a few lawyers practice only in and specialize in Labor Law/Service matters and they are well known in legal fraternity.

Sulabh Kulshrestha (Sr. Engg)     21 February 2013

I am told by my family seniors that any organization can get easily out of it by just showing their policy letter..that may say incentive not applicable beyond my date of joining or incentive not applicable below a particular designation? Under these circumstance what would be best suggested?

Kumar Doab (FIN)     21 February 2013

Your CTC sheet is the document promising you the incentive of Rs…./pm.

If you have been submitting representations on record (your lawyer must see what is written by you) for payment of incentives then has the company replied on record denying there is no incentive policy applicable to you/incentive amount earned by you?

It shall be appropriate to show the standing orders, appointment letter and all other relevant docs, email, records etc. to a competent and experienced labor consultant/service lawyer specializing in such matters, and spend some quality time with your lawyer at any location of your choice wherever you are, and let your lawyer evaluate the merits. Then you may proceed as deemed fit and under expert advice of your lawyer.

Sulabh Kulshrestha (Sr. Engg)     22 February 2013

No my organization never replied to my written mail requests.

 

And, I just came to know that last time when similar case was registered against my organization, they just triggered a back dated mail that responded to a previous person request that incentives are not applicable as per Company policies. Its just programming that they won with.

Kumar Doab (FIN)     22 February 2013

How a back dated email is triggered is not known to us. Is it a cyber crime is also not known to us? Your lawyer may suggest some remedy. You may proceed if you are convinced of the merits. Valuable advice of learned experts/members is sought.

Sulabh Kulshrestha (Sr. Engg)     22 February 2013

Every company has their own server base through which mail communication is done within company employees, its totally under hands of company IT personnels. Its mostly connected to intranet fundamentals..its easy all that need to be  done is reprogram some logics through programing languages.


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