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Nilesh (Share Market Trader(Individual))     12 May 2012

Clearance of salary arreas & delcared performance incentive

Hi,



1. Last year in the month of July,2011, I have got transfer letter from one department to another and increased my salary



as per performance. In this letter, they have declared to pay Performance Incentive of 2010-2011.



a. Increment in salary as per letter w.e.f 1-April-2012.

b. Incremented salary started receiving with effect from September, 2011, so salary arrears has to be given by



organization. But, I have not yet received arreas of last year toays date is 12-May-2012.



c. As declared performance incentive not yet been given which was of 2010-2011 and now 2012 is running.



d. These year company is telling now onward apprisal will officially on paper would be w.e.f September, 2012- August, 2012.



So, as per companies approach and apprisals and behaviour with employees, i decided to resign and started searching for my



future prospects.



Yesterday, I have got an offer letter from another good organisation to join but they are saying that you will have to join



in one Month whereas my existing notice period is 3 months. I requested to new organisation that I can join after 3 months



due to notice period. But that organisation is not ready to stay or said if you cant join then we will hire another



personnel.



The new organisation is very good and reputed and can not neglect to their offer. So I decided to resign with 45 days



notice period instead of 3 months.



I have some queries on resigning



1. Can my existing company will stop my PREVIOUS YEARS arrears as i mentioned above.

2. Can my company will stop my performance incentives which was of 2010-2011.

3. If i resign with notice period of 45 days, will they give relieving Letter. I think they cannot stop relieving letter.



Please let us know.

4. If i am goes on Notice period, will I be able to get salary for 45 days?? or how it would be the payment procedure.

5. Can I ask my organisation to clear arrears of pervious years & performance incetives as declared and mentioned above.

6. Will company will stop my these payments?

7. Are there any las to stop legally in laws from company's side?





Please let me know because I will have to send resignation letter with notice period.





Thanks & Regards,

Nilesh



Learning

 9 Replies

Kumar Doab (FIN)     12 May 2012

If you have performance incentive circular, performance data, and if you have qualified by satisfying clauses of incentive circular, you are eligible for incentive, and company shall have to pay. It shall be appropriate if you relate to incentive circular. If there is no incentive circular you are at the mercy of employer. You may immediately lodge your carefully drafted representation in writing under acknowledgment with relevant details with good offices of your appointing authority, MD, company Secretary, with a copy to Head-HR., peruse the matter and obtain the payment. If there are many qualifiers, ask them to submit their claim to good offices. You should be witness to each other. You may seek help from elders in the family, competent and experienced well wishers, trained legal mind, lawyer/law firm, to structure  your representation and build written record in your favor.

There seems to some confusion with dates.

2001-12 which is probably Apr 2011-Mar2012: From which date salary was increased? Any increment which is not paid has to be paid by company.

You may obtain copy of certified standing orders of the company which are to be displayed at the entrance/notice board and may also be available at employee portal, and if these are not made available you can ask for it ( preferably in writing under acknowledgment ) and also the employee rule book from good offices .

 

You may submit notice of resignation in writing under acknowledgment, and mention effective date of resignation, and make it clear that as per clause number.........in appointment letter issued to you, the notice pay @ basic pay( as mentioned in your appointment letter) may be adjusted in your FNF statement.

Company should pay all dues on last day in office or within next 2 days. Some companies clear FNF settlement in next 30 days which is as per their internal policy and not by any act. Company should not block salary for whole notice period; however salary for month in which last day in office may fall may be paid in FNF settlement. Employee can ask for advance against FNF amount say up to 80%. You shall need to take up with your good offices/Head-HR.

Relieving letter is issued post all settlements. Settlements at the end of  employee are paying loan if any, imprested cash, submitting company property if any, handing over the charge, completing the assignments if any etc....

You are within your rights to get your work experience/service certificate. Refer industrialemployment(standingorders)rules:[3][Schedule I-B (1)   Service Record (ii)   Certification of service.-

 

 

 

Nilesh (Share Market Trader(Individual))     14 May 2012

Thanks Kumar....

There is no such performance incentive circular received,  in the transfer letter they have mentioned that performance incentive is declared means they will have to pay but not yet been paid (please refer my opening topic for details). In the appriasal letter (Transfer Letter) my compay has mentioned following points...

Termination:
1. After completion of 3 years your service with us your appointment contract can be termintedby giving 3 months notice on either side.

2. Your service will be terminated by the company without any notice or payment in lieu of notice in case of misconduct , disobedience, insubordination or divulging any secrets of the firm, misappropriation or fraud or other misconduct, neglect of duties assigned to you.

3. Your services will be terminated by the company without any notice or payment in lieu of notice in case you breach company policies & procedures.

 

As per the new offer received from another company, I will have to terminate within 2 months atleast 45 days. My query is whether my existing company will relieve me because of above points in the letter i have got. As per internal sources or past history of this organisation, company do not relieve easily or do not provide relieveing letter. As per Act, please let me knw whether company can stop relieving letter.

 

For salary arrears, they have started to pay incremented salary from Sept-2011. (In letter, Apr-2011-Mar-2012 is increment given). April-2011-Aug-2011 not received arrears which is laible to pay by company.

 

Waiting for your reply...

 

Thanks & Regards,


Nilesh

Kumar Doab (FIN)     14 May 2012

You have posted that:

--"There is no such performance incentive circular received, in the transfer letter they have mentioned that performance incentive is declared means they will have to pay". To the best of understanding it does not mean they shall to pay. You must obtain performance incentive declared by company in written form from custodian of the circular. If you do not know or are not informed, by line management, HR etc you can get in touch with good offices of your appointing authority, MD. Relate your performance with incentive circular and stake your claim in writing under acknowledgment and obtain your payment before you resign. Company might have added that employee should on rolls at the time of disbursement of incentive payout.

--Increment in salary mentioned in writing has to be disbursed from effective date of increment. You may stake your claim in writing with good offices, under acknowledgment.

--In case of shortfall in notice employee is liable to pay max. Notice pay.

Employee should remain vigilant so that company does not get any room to charge the employee on any count including having caused loss.

In your notice of resignation you may mention that routine work on day to day basis may be assigned. Tasks may be assigned which can be completed with in and up to effective date of resignation. You may mention that you are willing to train the employee designated as replacement within and up to effective date of resignation, and details of the employee who has to take charge may be informed to you immediately.

Once the notice of resignation has been served by the employee it is responsibility of the company to designate replacement employee, which may be a new recruitment. Employee is to handover the charge to designated employee/reporting authority/HOD, as informed by the company.

--"As per Act, please let me know whether company can stop relieving letter."

According to you which Act stipulates issuance of relieving letter/

To the best of understanding Relieving letter is more of a trend, practice than as a document expressed in Act.

Relieving letter is issued post all settlements. Settlements due at the end of employee are, to complete tasks on hand, return company property/handing over the charge (under proper acknowledgment), advance/loan/imprested cash ( which company can adjust in FNF statement also if amount is sufficient to adjust), any other item on record.

Company can sit over the relieving letter. Acknowledgment of notice/resignation/company property, acceptance of resignation, FNF statement, settlement and payment of FNF dues, last salary slip, can serve as good as relieving letter.

Employee should inform the next employer that current employer (preferably in writing under acknowledgment) is unwilling to issue relieving letter and what documents can be supplied. Employer can accommodate the new employee without relieving letter.

Work experience/service certificate is to be issued and employee can rake up the issue under Contract law, SE act, Industrial Standing Orders. A competent and experienced lawyer can help the employee.

Out of 3 month’s notice period if you are tendering 2months and 45 days notice; ideally company should not make it an issue. If you wish to tender 45 days notice only it is reasonably good period. If you can suggest some good replacement your line management may appreciate. All depends how you handle the matter, and convince your company.. It is good if you know your rights.

Finally you may apply your rapport, goodwill, and exceptional levels of persistence, persuasion, negotiation, reasoning, skills and build written record and resolve the matter in your favor, while you are in employment. This shall be quickest and easiest solution.

Be Smart.

 

 

Nilesh (Share Market Trader(Individual))     15 May 2012

Hi,

 

Today's status is that I will have to submit resign letter that next compay has informed me that you will hae to join on July 02,2012. so accordingly i will have to put resign letter today itself that my existing compnay will have 45 days from today onward.

 

But, last week, i asked to my accounts department to clear arrears and performance incentives as orally aggreed to pay by organisation. My existing company do not know that I going to put resign letter.

 

Whether my company will pay above dues before July,2012?

 

Because I already asked to organisation that I am going through some financial crises. So, legally i think they willl have to pay.

 

What shall i do for arrears of last year and performance incetives of last to last year....

 

 

Thanks & Regards,

Nilesh

Kumar Doab (FIN)     15 May 2012

It is felt that you should submit representations addressed to good offices in writing under acknowledgment.

You may ask for say 80% of your dues ( submit statement of all dues including incentive, arrears etc) be paid to you immediately and rest in FNF statement.If you peruse well company may agree.

If nothing works the written record shall be useful later at appropriate time in appropriate forum.

You may proceed as deemed fit at your end.

Nilesh (Share Market Trader(Individual))     16 May 2012

Hi Kumar,


Thank you very much for your timely guidance.


My case is recently going through this phase and Im updating with u to take guidance. Hope your guaidance will help me a lot. And, expecting the same.


As per your last reply, i shud take it in written record, but in this case how i can get this with acknowleged because most of the times they havent acknowledged as per  my experiece. I have putten a mail by requesting dues (please find the attached).

My query is there is no acknowldged doc/mail that they given/replied back.

 

I have sent resignation mail to my immediate manager. But he replied immediately that we will not relieve you u shud give atleast 2 months notice whereas i negotiated with new firm to stay for 45 days. Now lets see, i must reply to my immediate boss that next company will not wait for 2 months.

In this case please guide.

 

Thanks & Regards,

Nilesh


Attached File : 422193381 re clearance of salary arrears performance incentives.txt downloaded: 151 times

Nilesh (Share Market Trader(Individual))     17 May 2012

Hi,

I need you guidance, new tragedy came to know from my new employer saying that u will have to join on 9-June-2012 ( in one 1 month) whereas I have putten a resignation for 45 days and last day will be 28-June-2012.

Now what should I do?.... I have 20 days PL & 6 CLs in my hand.

 

Please guide now what????...........

Nilesh (Share Market Trader(Individual))     18 May 2012

Dear Kumar,


I am expecting your guidance. Please guide.

Nilesh (Share Market Trader(Individual))     18 May 2012

m waiting for ur reply...


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