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Neeraj Pandey   26 May 2024

Labour Law

A person who is a sales employee. The senior officials of the company put pressure on him regarding work and target achievement. But the targets are given in such a way that they cannot be achieved. How should the employee deal with that situation? Whereas the company says, if the targets are not being achieved then resign.


 3 Replies

Neil   26 May 2024

Senior staff members or employers cannot put undue pressure on sales staff members by setting goals that are impossible to meet. Under the Industrial Disputes Act of 1947 and other applicable state-specific labor regulations, such as the Shops and Establishments Act, such conduct may be considered unfair labor practices. A firm may be accused of constructive dismissal if it sets unrealistic goals for its employees and puts pressure on them to quit if they don't accomplish them. Try using the internal channels for resolution. If that doesn't work, you can submit a complaint with the Labor Commissioner, seek legal action from a labor lawyer, or get assistance from trade unions.

1 Like

T. Kalaiselvan, Advocate (Advocate)     26 May 2024

The setting of unattainable targets can, therefore, constitute bullying, and could result in an employee feeling pressurised enough to walk out of their job, later claiming constructive unfair dismissal.

The commonly used performance-based pay structure (low base pay combined with “incentivizing” commission opportunities) means that reps have little choice but to work hard to meet their targets or face a lean month.

If you’ve taken a hard look at your processes, worked to optimize your timing, and your targets really are unattainable, then it’s time to speak to your manager. 

Emphasize the steps you’ve taken to turn this issue around and ask for them to reconsider the goals. You may well find that fellow reps are having the same problems but haven’t spoken up.

Regardless of the reason and frustration behind having an unrealistic sales target, try to approach the conversation with a sound effort and explanation.

If all your efforts failed then you can resort to legal action as per provisions of law.

1 Like

Dr. J C Vashista (Advocate )     27 May 2024

It is policy of the company / employer, where no legal dispute can be raised.

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