Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Resignation

(Querist) 02 September 2014 This query is : Resolved 
I worked as DGM-service since Jan'2013 now I resigned from my company on 11th aug 2014, my company adjusted 100% of my july salary against advance which I took against incentive which is a part of my package. co says the incentives accrued but not due will not be considered. I have requested to release my July's salary but in vain. I need money to meet my house hold expenses. Secondly keeping in view my advances and my salary + incentives earned(accrued) I have agreed to get release in month notice serving as against 2 months notice period in appointment letter. Lateron when my co refused to consider accrued incentives and sent me an account by adjusting all my salary upto 11th sep'2014, I wrote them that in such circumstances I would be allowed to complete 2 months notice period i.e till oct'11 and requested to release my July's salary. My co neither replying my queries nor paying my salary of July. Pls advise whether legally co can deduct 100% salary and also advise legal steps to be takens to recover my earned incentives..

Thanks

Naim Bux
P. Venu (Expert) 02 September 2014
Before resigning, had you served the requisite notice?
Naim Bux (Querist) 02 September 2014
yes I have given notice and still serving the notice period, but why they are holding/adjusting my July'salary where as I resigned on 11th Aug.
I have an advance of Rs.1.00 lac and the incentives accrued is more than the advance.
They have not paid a single penny, I find it very difficult to meet my house exp.
I have requested the director for release of July salary but after several reminders no reply has been given.
Pls advise what to do??
ajay sethi (Expert) 03 September 2014
issue legal notice to recover your salary dues
M V Gupta (Expert) 03 September 2014
According to ur company rules when do the incentives become payable? What does the company mean when they say incentives accrued but not due? Dont they become payable on resignation? You may file ur objections to the account statement sent to u and submit ur counter account statement and request for payment of ur salaries for the notice period service being rendered by you. Dont resort to court proceedings until ur service comes to an end as per the notice served by you and good conduct and character certificate and relieving letter is given.
Naim Bux (Querist) 04 September 2014
First of all I am really thankful to you all for your valuable replies/advises to my querries further I submit my querry as follows:

As per our company rules the incentives are being paid quaterly. Acrrued is the amount of work done during a particular qtr but the incentives are paid when all the money is recovered from customer i.e. transaction is complete. but since I have resigned and getting released on 11th sept'2014, I have requested them to consider accrued incentives but company is not listening. I spoke to director in this regard he said the same that whenever the transaction will be complete your incentive will be paid but since I am moving to another place, it will not be possible to come & find out whether the transaction is complete or not, so keeping in view I have requested my director to consider accrued incentive and adjust the same against my advance of Rs. 1.00 lac which I had taken when the advance adjustment is complete pay the excess amount to me. The incentive amount is 1.50 lacs plus till sept11. I have issued my accounts also but no response has been given and my salary from July till release has been adjusted against advance and no accounting of incentives. I am afraid that my co is doing this to eat my incentive amount which is a part of my package. when I joined this co in 2013 Jan my package was divided in two parts one interms of fixed ctc of 48000/- pm incl co's contribution to PF and 2% incentive on all parts & labour charges earned through service. I am heading service dept. and our job is to execute repair order and succesful completion of the same. Commercial terms with customers are being handled by sales dept. They allow credit to customer and recover dues so I have requested my co that why are you involving us in recovery and holding/not considering my incentives.

Pls advise what shall I do and also advise can co adjust/hold previous month's salary. Normally all dues are being paid at the time of release from the date of resignation. how they are holding or adjusted my July salary whereas I resigned in Aug.
Kumar Doab (Expert) 04 September 2014

You have posted that:

---“co says the incentives accrued but not due will not be considered”
Is it stated in writing?

If you have worked for period of incentive you are eligible.

If co. is levying some stupid condition like employee that is not in employment on day of disbursement of incentive/ has tendered notice of resignation-resignation shall not be eligible………………………………..then it may not survive. Incentive is fruit of labor and reward for extra/stretched performance over and above expected performance (to earn salary).

By the way did the company supply printed version of incentive circular and T&C?
Employer can not breach the T&C and trust.

---“I resigned from my company on 11th aug 2014, my company adjusted 100% of my july salary”

What is the pay day? How can salary of July remain unpaid till 11th August?

---“I have agreed to get release in month notice serving as against 2 months notice period in appointment letter.”

Did you tender notice of resignation of 1 month or 2 months?

Did you agree to get relieved in 1 month in writing?

Simply said: The resignation can not be accepted before expiry of notice period tendered by employee.

The relieving can not be preponed or postponed by employer.

Employee can withdraw the resignation before expiry of notice period and also before its acceptance.

---“ Lateron when my co refused to consider accrued incentives and sent me an account by adjusting all my salary upto 11th sep'2014,”

If FnF statement is wrong decline to accept in writing under proper acknowledgment.

---“ I wrote them that in such circumstances I would be allowed to complete 2 months notice period i.e till oct'11 and requested to release my July's salary.”

You should show what was written by you to your able Labor consultant/service lawyer and let it be structured and amended to suit you.

--- “ My co neither replying my queries nor paying my salary of July. Pls advise whether legally co can deduct 100% salary and also advise legal steps to be takens to recover my earned incentives..”


As already pointed out that employee can lodge complaint the moment his wages are delayed even by a day.

Unpaid promised payout are debt on employer.

It is reiterated that you must approach competent and experienced Labor consultant/Service lawyer with copies of job advt., interview call letter, selection letter, offer letter, appointment letter, HR policy/service rules & regulations stated in appointment letter, standing orders (certified/model standing orders applicable to establishment), incentive circular, detail of incentive accrued, notice of resignation, FnF statement, all communication/narration of representations and proceed under expert advice of your lawyer. ……………………….


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :