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Hitesh (Manager)     24 May 2011

Bonus Eligilibity in case of Notice period buy out


In my previous company my salary structure was 90% fixed and 10% variable. The variable about was mentioned in offer letter and was part of CTC. However it was to be paid at end of year.  ( based on individual performace, team's performance and company's performance etc ).

Another eligibility criteria for variable pay was to complete one year in the compnay.

I left that company after 11 months 18 days. And since I did not complete the full two months notice period as required by company, I paid the company  for the balance 14 days notice period ( which was partly settled through balance leaves and partly through cash payment  - I have receipt for it)

Though I didn't complete full year, but technically by buying out the balance notice period , and paying the company in cash for 14 days, I effectly completed more than a year.

My questions are :

(a) Will I be eligible for my variable pay in this case ? Can I follow it leagally against the company ?

(b) The company has deducted Rs 20,000/- from my end-of-settlement dues , which they paid me as relocation expenses at the time of joining. Because I didn't completed one year.  Is the company right in doing so ?

In case its stand a legal case against company, I will appreciate contact details of a labour law advocate , who can take my case.

Thanks a lot in advance.







 2 Replies

Hitesh (Manager)     26 May 2011

Dear Legal Experts,

Could you please advice me in this case. It is something critical for me.



Kamal Prasoon Sinha (Service)     03 June 2011

If a clause is there in the employment contract that employee will be eligible for variable only after completing one year of service, then you are not eligible for vairiable pay. If theere is no such clause then comapny should pay you variable pay proportionately.

Regarding reloctaion expenses you have to check its conditions for payment and recovery. Company can do so if they have policy to recover reloctaion expenses  from employees who do not complete one year of service.

before taking any legal action verify everything properly else you will be in trouble instead.



Kamal PS


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