Anjandroy
Dear HR experts and Legal Advisors,
I resigned from a company giving one month notice as per appointment letter with a request to relieve me early with full and final settlement of my dues. Though, the company has accepted my resignation, they have given an early relieving date, mentioning "as mutually discussed and agreed upon" (which i feel, can lead a confusion on my settlement) but nothing is mentioned about settlement of dues. They have also asked me to handover the office equipments (company car as per my appointment letter, laptop, etc), but i have asked them to, first send me the calculation of dues for my checking and based on my acceptance, strictly, w.r.t. appointment letter, enabling me to handover, to which they are not responding. My final settlement of dues is more than the cost of handover equipments.
Is my stand, legally correct, by not handing over till receipt of calculation of my dues?
Can company launch a complaint against me for keeping in possession the office equipments?
What precaution should i take, to be legally safe, in case i'm not?

Secondly, my CTC salary has two components, fixed and variable pay, and both the figures are mentioned. As per the language of the appointment letter, the variable pay value will be paid to me annually, based on mutually agreed targets, but till completion of one year from my joining, the company has not made any agreement. Instead, there is an email in the middle of 1 year, stating that, the variable pay will be made after 5 quarters against annual. My resignation has come between the completion of one year and completion of 5th quarter is 2 months away. There is no mention about, if anyone resigns before, will not get variable.
Can i assume that, in absence of any further communication (till completion of one year) on account of mutually agreed targets for variable pay, i am eligible to get the full variable component.

Please help me out of this situation

From India, Delhi
hrjaiprakash
Hi,
Company has all the right to not to give break up before settlement, you may complain once you receive your F&F and then may lodge for grievance, if any.
The company has right to initiate action against the property you have, because they have already relieved you, hence you are not employee of the company so cannot avail the benefit which was being provided at the time your employment.
If company has include statement like " Variable will be paid based on individual and company performance", then it is in discretion of company to pay or not.
Jaiprakash
AM-HR

From India, Hyderabad
hrjaiprakash
Hi,
Company has all the right to not to give break up before settlement, you may complain once you receive your F&F and then may lodge for grievance, if any.
The company has right to initiate action against the property you have, because they have already relieved you, hence you are not employee of the company so cannot avail the benefit which was being provided at the time your employment.
If company has include statement like " Variable will be paid based on individual and company performance", then it is in discretion of company to pay or not.

From India, Hyderabad
tajsateesh
1637

Hello Anjandroy,

You haven't mentioned the dates--so unable to make out if you are still with this Company or already relieved.

You mentioned that you have withheld the equipments like car, laptop, etc. linking it to your Final Settlement. Do you have any specific reasons to doubt/suspect that the Final settlement will not be done or unreasonably delayed if you return them to the Company--any past exp with others, any past unpleasant exp yourself in other matters, etc? Legally, I think your action is untenable--like Jaiprakash mentioned--unless you have very strong reasons [reason for my query above].

If you don't have any logical reasons for withholding the equipments-except your suspicion that you will be given a raw deal [maybe you have had any such past exp in another company], then maybe your action is also untenable on proprietary grounds.

Coming to your CTC components, first of all, the Company has every right to change the rules of the game as to when the Variable component will be paid--giving advance notice, which they did ['there is an email in the middle of 1 year, stating that, the variable pay will be made after 5 quarters against annual'].

As regards your comment ['There is no mention about, if anyone resigns before, will not get variable'], I presume you are in a senior role/designation in the company [given that you have a company car, etc]. Hence you might be aware that one of the main reasons why any Company--NOT just your's--link the Variable pay to a date after sometime--could be 12/15/18 months--is to ensure the employee stays for that period AND is productive. How they arrive at that figure depends on the Company's perceptions--NOT the employees'. This is apart from using it as a tool to motivate the employee to perform during his/her tenure.

I would suggest that you close the case from your end SMOOTHLY & move on with your career. Else, one POSSIBLE consequence [basically the worst-case scenario] could be that this Company could become a bad reference for you later on in your career--after all "the world is a small place". It's upto you to decide if you CAN & WANT TO handle it--if & when that situation arises.

Rgds,

TS

From India, Hyderabad
Anjandroy
Dear TS,
Thanks for your response.

Yes, I have been already relieved and am under notice pay.

My specific reason of holding office equipment is related to settlement of variable, which i got the hint before resignation, that it will nearly 40% (no back up). The company has sent me my Full and final settlement details, yesterday night and as expected, the variable amount mentioned in it is mere 15% (again no back up) of what i am supposed to get. They have mentioned that this is because of company's bad performance.

I would like to present the statement, as mentioned in my appointment letter, as it is "Your compensation on a CTC will be in two parts viz. Fixed pay of Rs.1800000/= and variable pay of Rs.700000/= based on achieved targets decided on mutual agreement".

(The salary break up in the appointment letter also shows that fixed pay to be paid monthly and variable pay, paid annually. Total Rs.2500000/=)

Now having mentioned the clause in the appointment letter for variable pay, my main concern is, "where are targets decided and where is the mutual agreement". There should be some agreement, between the employee and the employer, which employer has to initiate and then mutually agreed, which is definitely not there and also came to know from my known resources in the company, that the management is also concerned about this point (no back up document for holding or reducing variable pay).

Understanding the fact of the mail of 5 quarters, i am ready to wait till that time for release of full variable and not forced them to release it now, but at least, need the document along with my full and final settlement. And that is the only reason (i feel is strong), to keep the official equipments in custody. (my last two months salary and my variable is more than the cost of office equipments, i am having) and all the above points have been communicated to them.

At least, I should know what the targets are and what has been mutually agreed. Do you think, an employer can force anything to an employee. If yes, then i should surrender.

I had an earlier experience with another company, where after handing over all the office equipments promptly, my bonus (though not mentioned in appointment letter, but only in mail) was not released for 6 months and finally, my customers, followed with them for 3 days, the company (shamefully) gave me my bonus.

Now under above circumstances, what do you suggest? I will go with your verdict. Shall i go legal or surrender!!!

Please suggest.

Thanking You

Best Regards

Anjan

From India, Delhi
Anjandroy
Dear Jaiprakash,
Thanks for your reply. Now since my full and final statement has come (yesterday night) along with variable pay of much lesser amount (without a back up), I would like to know the meaning of statement in my appointment letter "variable pay of Rs700000/= to be paid annually based on achieved targets decided on mutual agreement"

The thing i am stressing on is "Where are the targets which were to be decided on mutual agreement". If they have not initiated or signed any such document/ agreement, in gone one year (annual completion), why hold or reduce, variable pay. Just simply writing that company has not performed well, does not relieve them from their obligation. I am ready to wait till completion of 15 months (as per the company's mail) for getting full variable and handover the office equipment, but i need a document for full release of variable, along with the full and final settlement.

And that is the reason, i am holding the office equipment.

Do you still have the same opinion or you would like to suggest something based on yesterday night's development.

I am eager to understand your point of view, at this point.

Thanks and Regards

Anjan

From India, Delhi
tajsateesh
1637

Hello Anjan,

You asked: Shall i go legal or surrender!!!

I would say--NEITHER.

Suggest put in WRITING the reasons why you are holding the office equipment, with a 'read confirmation' if you are sending a mail to ALL those concerned with cc: to the top guys [and if you have already conveyed this to anyone verbally, you can mention that too--could make your case stronger]. Also mention that they will be returned to the Company the moment there is clarity on if & when the dues are paid in full. Obviously, they wouldn't answer the 'if' part--since it will land them in trouble if you go legal. And coming to the 'when' part, you only need to wait for their reply.

Next, just keep sending regular--maybe weekly would do, but it's upto you--reminder mails to ALL of them that you are waiting for their response. Frankly, if I were them, I would see in which direction you are taking the whole issue--building up your case IN CASE IT GOES LEGAL.

Take my word--they will get to a compromise--my suggestion is not to insist on the full amount if it comes to that, since the reason they gave may be related to the recession--and it's a bit tough to prove if it really effected THIS company [unless it goes the legal way]. And then learn from this--after all that's what experience is all about I guess.

This could take a bit more time than your patience may allow, but definitely lesser than if you REALLY go legal.

All the Best.

Rgds,

TS

From India, Hyderabad
Anjandroy
Dear TS,

Thanks for your reply once again.
I would to like to inform that there is no recession subject in this settlement.
There were no targets (for company's as well as individual's) nor there are any documents which the company can show, by hook or by crook, which has been signed or even mailed to others for any targets or subsequent agreement.
In normal circumstances, in most of the companies, a circular comes (with whatever may be the subject) to the concerned employees of the company, which, in case, if not responded by employee/s, is assumed to be agreed by the concerned employee/s, but even this is not the case here.
Since i am aware that the company's, this year business is much more than the last year, they are simply unable to deliver it on time-lines given by the customer, so revenue generation is comparatively less, but at the same time, i am ready to wait, i am looking for my full settlement of my variable pay, at least for its getting documented along with the settlement which, they are ready to make now.
"Read confirmation" will totally depend upon their choice. I can make the option of "delivered". Is it o.k.?

Still, i will not insist for full settlement of variable, but i liked your option of "if and when" and am going ahead with the same.

Thank you so much. I will surely send you an update on next development, hopefully concluding part!

Best Regards

Anjan


From India, Delhi
tajsateesh
1637

Hello Anjan,
All the Best.
Reg your query if 'delivery confirmation' should be OK, I think it should--but if there's an option of selecting BOTH 'delivery' & 'read', choose both. The idea is to LET THEM KNOW that you are building up a case. If they choose NOT TO REPLY OR RESPOND either way, I think 'all the better'--it could only make your case stronger. But like I said, if they were smart, they would respond in some non-committal tone [if the intention has all thru been to avoid paying up], in which case the issue could drag a bit.
But pl do ensure that your language is very 'docile', 'pleasant' & 'requesting' sort of thing--so that they won't get a chance to use it later. If you need to refer to the Thesaurus, pl do--I know there will be quite a few equil words for every word we use to convey the message strongly & yet ensure it can't be misconstrued as offensive. I hope you get what I mean [I have done it earlier on very critical issues with success, great success I should say].
Rgds,
TS

From India, Hyderabad
Anjandroy
Hi TS,
The situation is entering in to new phase.

My mail to my employer

Dear Sir,
In regards to my variable pay, the figure given by the office of Rs1.0 lacs (without any back up of mutual agreement on targets to be achieved, as per my appointment order), is technically or logically, not correct and following are the reasons for it:
1) When i joined the company, office had interviewed me and Rs.25 lacs CTC per annum and company maintained car was agreed.
2) Later, office proposed, with my agreement that 18 lacs will be fixed salary and 7 lacs based on mutually agreed targets to be achieved.
3) I had been regularly asking office about the targets, but never got any quantified reply. Had i got anything for the targets, i could have planned things accordingly. In the initial stages of start of our branch office, Mr. Sharma left the organization, without giving any contribution in Business Development.
4) As a responsible employee, i made my own targets within the limits of my role in Business Development and based on the availability of team in branch office, contributed to a business of nearly Rs.120.0 crores in just around a year.
5) Till my last working day in the company, i have not seen any document or mail, which is quantifying any figure for targets, forwarded to me for mutual agreement and acceptance.
6) No organization can hold a person responsible for any failure, which is not related to his work or job profile and if they do, there should be strict guidelines at the time of joining the company, so that an employee is aware, what is to be agreed and what not.
7) My appointment order clearly says that Rs.7.00 lacs is a variable pay and is part of my CTC and will be paid to me annually (365 days) based on targets mutually agreed. And based on above points, i, by default, become eligible for my entire variable for 389 days (my employment period in the company) for Rs.746027.00.

Since there is a mail from Director, that the variable pay will be paid on 31st March 2011, I need documentary confirmation on Rs.746027.00 too (as mentioned in point no.7), with clarity on date of its receiving separately (if not being given with full and final settlement of fixed pay and other office expenses), along with my full and final settlement enabling me to handover the office equipments.

Their reply on the above mail, through the companies nominated person is given below:

Dear Anjan,
Let us be frank. Incase you insist on such thing, the same will go legal and will become messy. I got in as discussed with you to sort issues out. Incase you want to get into the legal mode, please let me know and I will move out and will let natural course of action.

You should remember that you have signed an accepted the appointment letter and it was your responsibility to write to HR (not anyone else) to clarify any details in your appointment letter which you have not understood. As I have told you that you are the only one who is getting variable. Incase anything is mentioned as per company policy, you could have easily found about the same before accepting the letter.

The car is registered in the company's name and there is no letter handing it to you (wrong, it is mentioned in the appointment letter itself). Incase the company decides to lodge a FIR and gives your address, it will become messy and I would not be surprised if an ad in put in the papers with your name and photo about moving out with company property. Will that be good? I do not think so.

We had discussed and we had agreed on certain modalities (he means to say accept the dues "under protest"). Incase you still insist on the contents of the email, let me know and I will just get out of the same and let it go legal. I can also assure you that the case will be in Hyderabad since you are employed by a Hyderabad company and you will have to unnecessarily come here everyday from Chandigarh. What I had suggested was the best way forward but it is your call.

Thanks

The above mail is yet to be replied from my end but can you make out, what are the intentions or it is just a threat. Though, through sms, i have replied them, "do whatever you like, but i will go absolute document and if required, i will also make sure that organization also earns a bad name". They have replied to me that, they will talk to me tomorrow.

In the mean time, need your inputs based on above mails.

Awaiting

Regards

Anjan


From India, Delhi
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