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Jaya   13 November 2018

Performance based variable payout

Though I have read many forums before posting my query here but still wanted a detailed and correct approach for this.


We have a Performance Based Variable payout mentioned in the salary annexure (to be paid after completing a year with the company). One of the employee joined us on Oct 8, 2017 and completed a year with us on October 7, 2018. The employee however resigned on 12 October 2018. My question is should we be paying that performance bonus to him basis his last year's performance?

There are no other terms and conditions mentioned anywhere in the offer/appointment letter/ HR manual related to Performance Based Variable payout. Is it true that this performance bonus should only be paid out if the employee would have continued to stay? Is this a liability on company? If company decides not to pay the performance varibale pay, can an ex-employee file a compalint in the labour court? Is varibale pay considered a part of wages?

I am in confusion, please help.




 1 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     13 November 2018

employees that have left the organization are still eligible for their arrears.  Employers will have to pay the outstanding bonus of past employees as well.


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