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PLI (performance linked incentive) promised not being paid


13-Sep-2023 (In Labour & Service Law)
I have 2 queries: 1) When I joined my ex-Company, I was promised a CTC (cost to company), which included a PLI portion. Over the years, the Company increased the proportion of PLI in CTC. Though at the time of joining, I had negotiated on the total CTC, the Company puts a small clause in the appointment letter / subsequent annual appraisal letters that CTC will depend on employee performance as well as Company performance. I have been performing very well & got good ratings also, but the Company has not performed well. As a result, the Company has paid PLI only at 65% of the PLI promised as pert of CTC, resulting in reduction in CTC. Is this allowed? I want to file a case against the Company for the same. 2) I left the said Company on 1st Feb'16, thereby serving 10 months in FY 2015-16. But the Company will not pay me proportionate PLI since I have not completed full year's service. Since PLI was 28% of my total CTC, I will suffer huge loss. Is the Company allowed to do so?
Answers (1)

Answer #1
680 votes
Yes, everything depends on terms of appointment letter.
If this things are declared in appointment letter then company can do it .your wordings say that you are not worker . Toy mai have to figure out case in the contract act.

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