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Non payment of incentive mentioned under contract.


09-Aug-2026 (In Labour & Service Law)
My acceptance of offer letter as a consultant is based on 50% incentive over 1.5 lakhs , which is minimum guarantee salary. I have resigned due to disputes , and now ceo is refusing to pay the incentive brushing it off as clerical error.
Answers (2)

Answer #1
858 votes
If the incentive was expressly agreed in the offer letter, the employer may be contractually bound to pay it. A unilateral claim of “clerical error” may not defeat an agreed term. Review the offer letter and related communications.
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Advocate Ravindra Anjaneyulu

Adv. Ravindra Anjaneyulu

LawRatoAnantapur | 5+ Answers
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Answer #2
514 votes
If the offer letter clearly provides a 50% incentive over ₹1.5 lakh as part of the agreed remuneration, and you fulfilled the conditions for earning it, the employer cannot ordinarily avoid payment merely by calling the clause a “clerical error.” The exact wording of the offer letter, acceptance, incentive calculation, and proof of work/revenue will be important. You may first issue a written demand for payment, reserving your legal rights. Depending on your status as a consultant and the contractual terms, appropriate civil/contractual remedies may be available. For detailed legal advice and representation, you may contact us through our LawRato profile.
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Advocate Mrudhula Jahnavi

Adv. Mrudhula Jahnavi

LawRatoSerilingampally | 200+ Answers
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