Hello,
Need advise on following matter.
Is it legal t convert a part of fixed pay into variable pay which will be related to performance.
i have a case where a high salary is being paid to an employee but for last one year his performance has been below expectation. One of the major reason is that he has taken a lot of medical leave which prevented him from getting involved in projects. Hence his performance and capability is not coming out and we are not getting value for money being paid to him.
We do not want to terminate him as it will be not right to dismiss someone on medical reasons. At the same time we want to avoid such high costs. So can we convert a part of his fixed pay into variable pay?
Looking forward for valuable suggestions.
Thanks for help.
AB
