Ex gratia can be challenged by employee
Kritharth
(Querist) 19 May 2016
This query is : Resolved
If company is giving incentives on meeting targets on monthly basis can this be considered as ex Garcia or is it a way to avoid paying the money when an employee leaves the organisation , my job was completed based on targets and they use to pay every month and now when I have left they are saying since you have joined our competitor we will not pay
P. Venu
(Expert) 20 May 2016
No definite suggestion could be given. However, you may serve a Notice on the Company, preferably through an advocate, requesting for the incentive highlighting that the said incentive amounts to deferred emoluments and hence has no rational nexus to the subsequent event of leaving the company. You can also highlight that the denial of incentive amounts to penalty for joining the competitor.
Advocate. Arunagiri
(Expert) 20 May 2016
You may send them a letter demanding your legitimate dues as per agreement. If they do not pay, you may approach the Labour Consciliation Officer for suitable remedy.
Kumar Doab
(Expert) 20 May 2016
Incentive like wages is fruit of labor.
Its payment is made alongwith wages on pay day and is shown in salary slip and is subjected to tax treatment.
Do you have the copy of incentive circular and performance data? What is mentioned in it ;incentive or performance bonus or Ex-Gracia?
Do you have salary slips showing payment of incentives, every month?
"they are saying since you have joined our competitor we will not pay " is it stated in writing?
Has the last months salary paid and salary slip supplied? Does it show non payment of incentives?
While initiating such queries the querist should post the basic information e.g;
You may post the exact extract from appointment letter on termination/resignation.
What is your designation and nature of duties in appointment letter and on record?
You were in which state?
What is this establishment; Commercial/Industrial ?
Does it have Certified/Model standing orders and does it apply to your designation?
Are you a member of employees/trade unions?
What was your last drawn salary?
You were under probation/confirmed?
You may write to good offices of appointing authority, MD and attach the copy of incentive circular, performance date, salary slip/account transfer, Form 16 etc showing payment of incentive every month and cite that last month's incentive is not paid and on dated..............Mr/Ms..........designation.............has stated that the reason for Non payment is that after leaving the company (mention name) you have joined M/s (mention name) and no such speaking order is issued and supplied to you till date. YOu may request that NO such term is part of eligibility of incentives and hence payment of incentives be released to you by redg. post so as to reach you in say next 3 days.
Rajendra K Goyal
(Expert) 20 May 2016
Proceed as advised by the expert Kumar Doab.
T. Kalaiselvan, Advocate
(Expert) 23 May 2016
The employment offer letter is to be seen for rendering proper opinion to the company's act and your grievances. The conditions of the employment for joining competitor after resignation shall indicate their intention after which you can think about initiating proper legal action as envisaged in the law.
Kumar Doab
(Expert) 23 May 2016
The wages are to remain at employer's discretion during work hours and do work/duty assigned by employer..........
Incentives are allurement and fruit of labor to perform and complete tasks in specified manner and achieve set objectives for employer that can enhance revenue/profit/objectivity for employer.....
Like wages, OT, incentives are fruit of labor and can not be denied.
You have not replied to all points, pointwise hence more inputs are not posted.
