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Anoop K (Marketing Mgr)     20 September 2011

Payout of variable pay

Hi... My friend has just quit from a reputed organisation based out of Bangalore in March 2011, and this is regarding her full and final settlement from the company.

1. Her offer letter, which speaks of the "Terms of Employment", terms that the Variable pay is paid "Quarterly"

2. The Variable pay policy, says that an employee is paid the variable pay, only if he is on roles of the company, when the variable pay is announced.


The above 2, are contradictory in nature, and she has not been paid with the complete variable pay for Q3-2010. The above two points are completely contradicting in nature.

My questions are:

1. Can she file for a recovery of variable pay that is entitled to her?

2. Under what provisions of the law, can the matter be filed?

3. She only has e-mail conversations with the HR representative, and will this hold good as evidence?

4. Will a law suit cause any career issues to her?

5. What should be the procedure adopted to file a suit?



Learning

 2 Replies

Ruchi Choudhary (Manager-HR)     20 September 2011

Hi Anoop,

need to know few things:

1. did she got only offer letter or also an appointment letter?

2. if she is having an appointment letter ..pls check if there is any clause stating that how the variable will be paid..

3. in offer letter is it stated that she is a contractual or on third party rolls and is the offer letter given on the company letter head?

On the basis of the information may be i will be able to help u out...

thanks

Ruchi

Anoop K (Marketing Mgr)     20 September 2011

Hi Ruchi, Thanks for your time and interest in helping me and my friend.

1. She has the offer letter on the company  letter head, dated 13-June-2007, but she does not have an approintment letter.

2. She has obtained the relieve letter from the company on her exit on 03-MAr-2011.

3. There is a variable pay policy in the company which only states that the employee is entitled to obtain the variable pay, only if he/she is on the rolls of the company as on the day it is announced.

4. The offer letter, in it's annexure of Compensation, clearly states that the Variable pay is payable "Quarterly"


Hope this helps... Please let me know if you have any questions.


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