Performance pay denied as employee not served full calendar year

09-Apr-2023 (In Labour & Service Law)
I have worked for Mahindra Group company, as COO, at strategic Top Management role. On the salary package 20% is performance pay. I have resigned from the company, served the entire notice period, and got relieved from services effective 23rd Oct 2017. When I am claiming the performance pay, Now the company is communicating back, that the performance pay is not payable as employee has not served the oranisation for the full calendar year and on the day of disbursement, the employee is not on roll. There were no such written down policy or communication on this matter. I have never received any such communication in any of the Appointment letter or pay revision letters. Under which law we can file a suit? What is the procedure
Answers (2)

Answer #1
962 votes
You should do the following:
1. File a complaint on your letter head;
2. You can also send a legal notice to your employer first.

I would suggest the following after the above mentioned methods don't yield results:
1. File a recovery application before the Labour court, provided you fall within the definition of Workman (which in your case I presume you do)and the Company an "Employer";
2. You can also file an FIR in the nearest police station for fraud and cheating;
3. If you are not getting the requisite remedy, you always approach the High Court for quick relief.
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Answer #2
759 votes
Performance pay is based on whole year worker performance. But before this I want to clear something that Performance related pay is put in place by some companies who wish to reward employees on an individual and/or team basis. It is used to incentivise those at the top of their pay band or as a means of enabling employees to progress through the pay system, with pay increases being measured against targets or objective criteria. So they not mention this pay in appointment letter or pay letters. The worker should complete all targets and he will get this pay. so kindly ask to HR for your progress/performance report and how much you earn from your performance. If you have been some then ask to pay them. If they denied then you can file recovery suit in labor court.
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