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rosebowl   06 March 2017

Non-payment of annual performance bonus (variable pay)

Dear friends,
 
I want your help in understanding what are the options an employee will have if he/she is not paid his/her annual performance incentive (variable pay). The variable pay figure has been mentioned clearly in the offer letter/appointment letter. The wordings in the offer letter are : In addition to your salary, Rs. xxxx per annum as performance incentive will be awarded at the discretion of the management after appraisal of the successful performance of the employee and the financial performance of the company.
 
In this case, the performance of the company and employee are very good. Even then if the employer does not pay, then what are the options of the employee to receive this amount?
 
Regards.
Vijayan.


Learning

 10 Replies

Kumar Doab (FIN)     06 March 2017

First thing FIrst:

Downlaod printed version of Policy: annual performance incentive (variable pay), perfomance paframeters, perfromance data of employee and company.

 

Kumar Doab (FIN)     06 March 2017

As per your psot it is promised amount and fruit of Labor of employee.

 

First write ( under proper acknowledgment) to the authortiy that has to calculate.decide and disburse.

Let them reply in writing. 

Escaltae to good offices of appointing authrotiy, MD.

Let them reply in writing. 

 

rosebowl   06 March 2017

Dear all,

In this case, there is no policy established by the company on payment  of annual performance incentive. Further, my department head has approved this payment based on performance, the HR department head and Finance department head also have approved this payment. However, when this approval note was put up for MD & CEO's approval, it is withheld by him for the past 2 months without commenting on the note. MD & CEO is of the view that there should be specific parameters that should be designed for making this payment. However, there is no specific parameters defined by the company apart from the performance appraisal parameters. Already more than 1 year has passed and this payment is long overdue. But MD & CEO has withheld the payment without approving or rejecting the amount.

Kindly advise.

 

Regards,

Vijayan.

Kumar Doab (FIN)     07 March 2017

The extract of the policy from appointment letter, approvals by Dept Head, HR, and Finance can be of help to you.

If CEO/MD wants to make  change in policy the published version can be supplied to employee.

 

Kumar Doab (FIN)     07 March 2017

Either resolve by your own efforts or get support of employee’s unions/Greivance Redressal Committee/Works Committee/Guild/IC or your own counsel specializing in Labor/Service matters.

Next time be careful to get copies of rules/polices before signing the acceptance of employment.

Discretion of management in absence of any well laid/described and fair policy can be against interest of employee.

rosebowl   07 March 2017

Thanks for the advice Kumar Doab,

However, by getting support of Greivance Redressal Committee/Works Committee/Guild/IC, are you meaning to approach the Nearest Labour Office/ Labour Officer in Charge?
 

Kumar Doab (FIN)     08 March 2017

NO.

These are as simple as terms for: united employees.

rosebowl   08 March 2017

Ok. If i file a complaint with the nearest Labour Office, will it help to get the payment from the company?

Kumar Doab (FIN)     08 March 2017

Employee that is covered by the def. of 'Workman' can approach Labor Court/CGIT ( State/Central: as applicable in indivisual case).

 

Kumar Doab (FIN)     08 March 2017

Are you not a member of any employee's/Trade Unions?

Had you been a member you would have been properly informed.

Before approaching a forum, prefer to discuss with your own counsel at your location that speacializes in labor/service matters. 


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