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Jatt   12 September 2017

Annual incentives not paid by company after resignation, saying my performance is not good


I worked for an Engineering Service Industry for about 3.5 years. When I resigned, I paid all the money as mentioned in my bond & got my experience/service letter & my fnf was done without annual incentives. At that time HR told me that you will get incentives once it is declared for all employees by management. When incentives for all employees was released they told me that my performance rating for that financial year did not make me eligible for annual incentives. Annual incentives are for financial year from Apr16 to Mar17.

I would like to share few points because of which I think that I should get annual incentives,

1). I got promotion on 4th Aug’16  with a good increment in my salary.

2). I was sent to USA for onsite opportunity (from 12th Nov’16 to 30th May’17) where client was very happy & satisfied with my work.

3). When I resigned, my manager tried his best to match my salary expectations (new offer) but unfortunately management refused to do so & I was released with proper handover & fnf.

Now, my question is why will company do so many things for a non-performing candidate..?? When was my performance poor..?? I also asked my company to share USA client’s feedback but they did not do that.

Also, as per standard rules, company should inform me or warn me during performance review or appraisal discussions regarding my poor performance, which never happened. Infact my appraisal discussions was always good. Now HR is simply saying NO for which they even don't have any justification. I have asked them that I need my performance related feedback in wirting but not yet received any reply from them. I am sure they will not give it in writing that my performance was bad.

Company has mentioned the annual incentive amount in my increment letter as well but has mentioned this point that it will be based on my performance. I guess, company is not paying this amount from their pocket, infact It is a part of my annual package which company is keeping with them. When I got promoted (on 4th Aug’16), my revised total package was Rs.9,51,437/- in which company kept Rs.1,20,601/- as annual incentives & now they are refusing to pay this amount. Are they doing right..??

F.Y.I, I have attached the annual incentives condition mentioned in my increment letter.

Can anybody suggest me what I should do..??

I would appreciate your valuable feedback in this regards.

Let me know if you need any more information.

Thanks in advance.


 16 Replies

Vijay Rahi (Partner)     12 September 2017

Send your Employer a Legal Notice from a Good Lawyer, and if inspite of the Notice your Employer refuse to pay the Incentive, don't hesitate to drag your Employer to the Court.

After that you will got your Incentive, Interest thereon and the Legal Cost as well, as compensation for all the hassels.

Adv. Vijay Anand Rahi

# 9818004119

P. Venu (Advocate)     12 September 2017

Yes, you can send legal notice and follow it up with civil action, if so advised.

Kumar Doab (FIN)     12 September 2017

You have not posted your DOJ, LWD.

As per attachment the condition of 3 years may not be applicable in your case.

So, some employee of establishment is resorting to verbal declinature.

Kumar Doab (FIN)     12 September 2017

Have you communicated in writing?

If yes with whom: say designated HR personnel, Line Manager?

Who are the stakeholders in deciding incentive/performance?

Did you escalate as per policy/rules say to MD/CEO and exhaust internal remedies?


Apparently the declinature is verbal and by verbally casting doubts on performance.


You may write to foreign client and IT may reply and provide you with report on your performance. Apply your rapport, goodwill, contact to fetch a reply. There are many threads in which employees have mentioned that client has sent the report.


Jatt   12 September 2017

I thank everybody for their valuable reply & really appreciate it.

Mr.Kumar Doab - " The first line of my message says that I worked for 3.5 years, hence as per company policy I am eligible for annual incentives. Also, company never siad that this is a reason for not getting my annual incentive. Secondly, yes I have communicated everything in emails to HR team with CC to my reporting manger but regarding my performance feedback company has not given anything in writing. They just wrote that my performance rating for financial year did not make me eligible for annual incentives. Regarding escalating this matter to MD/CEO, that is not possible, I cant even reach or contact them. It is a very big well known/reputed organisation in all over India which is spread in many sectors. This decision is taken by HR manager (engineering division) ".

My concern is just to ensure that I am not wrong anywhere & what company is doing with me in wrong. Also, I wanted to check is it legal to keep Rs.1,20,601/- as annual incentives (performance based) from total annual package of Rs.9,51,437/-..?? This money is mentioned in my increment letter & company is not paying me anything extra. Whether this company policy is right..??

I am in USA right now, working for an American company, can I file a case in India from here..?? Will I create anykind of problem for myself or will I need to go to India in any case for this matter..??


Kumar Doab (FIN)     12 September 2017

I have already noted and have already posted that you have worked for 30.5 years; hence the said condition in extract in attachment is not applicable in your case.


Kumar Doab (FIN)     12 September 2017

Do you have the printed version of said ‘Annual Incentive Scheme’ of the company and appraisal policy and matrix and copy of your performance appraisal?

Also download all communications to HR with CC to Line Manager if these are from official email id that might be blocked anytime.


Download all of these and attach and apply your own skills;   reasoning, persuasion, persistence, negotiations while in employment, and write to all stakeholders in said schemes, under proper acknowledgment.

Apply your own resources and get contact details of MD, CEO.


This is unsaid, unpublished policy for employees that such incentives are not paid to employees that have resigned on one or the other pretext.

As; Majority of the employees give up their rights after some time.

Kumar Doab (FIN)     12 September 2017

At LCI also many of the fake Experts post daily for employees; forget and give up balance salary, payouts and allure them to private telephonic/email consolations for a FEE. One such entity is IT=@PSD and many of IT’s multiple fake ID’s, many of which are blackened/blacklisted/shunted out.


While the very purpose of forums like LCI is to, discuss various perspectives and legal options that employee can approach.


Perspectives1: As suggested by Mr. Vijay Rahi, Mr. P.venu you can proceed with legal notice.

1 Like

Kumar Doab (FIN)     12 September 2017


Perspectives2: Build irrefutable written record and download all relevant details and documents while in employment and to remain amiable and gentle and get relieved with proper relieving docs e.g; offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC, service certificate/relieving letter (with good comments on conduct and performance).


In case of disputes: Employee should try level best to firm up with next employer preferably in writing that they may accept and absorb him/her on the strength of copy of notice of resignation/final resignation and at the most it’s POD alone and must not resort to any action like termination if the current employer does not issue acceptance of resignation, relieving letter………

Employee can submit acceptance of resignation, relieving letter………only if it is supplied by employer.


Employee may explain the situation and assert that current employer may issue adverse comments in BGV and future employer should stand by employee…

It is possible.

Kumar Doab (FIN)     12 September 2017


To ascertain the forum that employee can approach:


 While posting such queries employee should post basic information!

What is this establishment; Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?


Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Does the establishment have its appraisal system? Do you have copy of signed appraisal forms, matrix, KRA’s, performance date? How was your performance?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?



Kumar Doab (FIN)     12 September 2017

If the Div. in which you work is covered by Shops & Estbs Act and you are covered by def. of Employee as in the Act you can approach:

Inspector appointed under the Act

O/o Labor Commissioner (ALCC); if you are covered by the def. of ‘Workman’ as in ID Act

Higher Officials of Dept. of Labaor


Inspector appointed under: THE PAYMENT OF WAGES ACT, 1936

GO thru;

3*[(vi) (c)

and amendment


This Act does not discriminate between Workman and Non Workman.


Civil Courts

Winding Up petition; Since company has declined to accept the debt yo may need to establish that the amount is payable but not paid………….hence download all docs as already suggested….  




Jatt   12 September 2017

Hello Mr.Kumar Doab,

Thanks for your reply & for the information you shared.

I left my company in May'17 & got my service/experience letter. I have also withdrawn my PF amount. Since then I am communiacting from my personal email ID. I have my appointment letter, confirmation letter, increment/promotion letter & my salary breakup/structure card. I dont have company annual incentive scheme policy documents or company performance/appraisal policy document because none of the employee asked for it & also I think company had never shared it with any employee.


Kumar Doab (FIN)     12 September 2017

Usually the company replies that the said policy(ies) were placed on shared portal, and employee had access to it.

If company never shares/shared it then it is unfair.

Anything that does not exist can not be claimed as to have existed or that IT exists.

Employee and IT's attorneys in Line Management/HR/legal cells must not behave like street magicians and produce things from thin air.


In any case company could have supplied these to you to substantiate IT's contentions.

Employee should ask for authenticated copies of all rules/policies that are mentioned in appointment letter etc before signing on dotted line and all policies/rules are quoted anytime later. 

Or you can ask to supply these since there is NO employer-employee relationship now.

You may if you wish write to MD,CEO at HO address, where they sit.

I have sent you some links including how to find emaild id's if you want to communicate by email.





Kumar Doab (FIN)     12 September 2017

Some of the replies have been given by you, some I have guessed and if you wish you may reply pointwise to all points and I shall share more inputs, that can be shared. 


If you can resolve by your own skills ; go ahead, or take help and support of employee's/trade unions or lean on a very able LOCAL senior counsel of unshakable repute and integruty specialzing in Labor/service matters and having successful track record.


You may check at local CGIT, Civil courts, HC,CAT,SC at your last location where from you resigned  and find out about all such counsels.



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