Incentive payout issue
10 months ago
When I joined the company they told me that there is incentive payment on achivement that is yearly payout I have achieved 190 %of my targets in 2021 still not got full payment of 2021 and 184%in 2022 and one year is over and company got the revenue also now the time has come for incentive payout for 2022 now company is saying you have not performed this year well you are terminated and also not providing any clarity on incentive amount when they will pay so please suggest can I take legal action against them if they denie to pay and not committing the exact incentive amount also after asking many times
A.Dear client,
First send a Legal Notice. If the HR department fails to resolve the issue of non-payment of incentive or fails in taking any action, the employee can contact a labor and employment lawyer who can help you approach the labour court against your company
First send a Legal Notice. If the HR department fails to resolve the issue of non-payment of incentive or fails in taking any action, the employee can contact a labor and employment lawyer who can help you approach the labour court against your company
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A.Dear Client,
In case your contract of employment i.e, an offer letter, specify that on achievement of the target level of performance, you will be entitled to payment of an annual incentive payout, and non-fulfillment of said target level of performance, you may face termination from the Company without any compensation or service linked benefits, then on acceptance of such a term of employment by an employee, the employer can take action accordingly. But in the absence of any such condition in the contract of employment, on achieving the target level of performance, the employer is duty-bound to disburse your annual incentive payout for both years and cannot withhold your incentives or terminate you outrightly in violation of natural justice on the ground of poor performance which amounted to victimization and unfair labour practice on the part of employer/Company. So, you need to serve a legal notice to the employer and reach out to the office of the concerned Labour commissioner to file a complaint against the employer for victimization and unfair labour practices to resolve your grievance. And in case of termination during the pendency of the complaint before the Labour Commissioner, you may approach directly before the concerned Labour Court u/s.2A of I D Act, 1947 for arbitrary and illegal termination from service.
In case your contract of employment i.e, an offer letter, specify that on achievement of the target level of performance, you will be entitled to payment of an annual incentive payout, and non-fulfillment of said target level of performance, you may face termination from the Company without any compensation or service linked benefits, then on acceptance of such a term of employment by an employee, the employer can take action accordingly. But in the absence of any such condition in the contract of employment, on achieving the target level of performance, the employer is duty-bound to disburse your annual incentive payout for both years and cannot withhold your incentives or terminate you outrightly in violation of natural justice on the ground of poor performance which amounted to victimization and unfair labour practice on the part of employer/Company. So, you need to serve a legal notice to the employer and reach out to the office of the concerned Labour commissioner to file a complaint against the employer for victimization and unfair labour practices to resolve your grievance. And in case of termination during the pendency of the complaint before the Labour Commissioner, you may approach directly before the concerned Labour Court u/s.2A of I D Act, 1947 for arbitrary and illegal termination from service.
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