KMallick
Hr Professional
Vijay22
Operations
+1 Other

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Hi All,

I am associated with a company since past 1 year and 6 months. 20% of my CTC is a variable pay that would be paid at the end of 1 year. I have heard from my seniors who have left the company that the variable pay was not paid during the F&F settlement procedure.

Is it legal not to pay the variable part of the salary if the employee quits mid-term after serving notice period.

What is the procedure that I have to adopt if the company does not pay the variable part of my salary when I leave.

Regards,
Vijay

Hi Vijay,
That is depending on company policy, if you aware of company polocies it will be cleared. company to company polocies will be different. if there is no polocy like that you are elgible to cliam that amount, otherwise it is not possible.
with regards,
Ramesh

HI... variable pay is a component which is to be paid based on performance ...
As per respective co. policy, it may be paid ony on individual performance, or on individual and co. performance... and in normal circumstances, performance is measured annually...
When an employee leaves mid-year / mid-way .... although, he may claim her/his variable part... if the co. PMS policy states that variable will be paid only on completion of 12 months / min duration (6months/9months) then it has to be followed...
If there are no clear guidelines, one may get oneself appraised during the time of leaving, and get paid on a pro rata basis...
There is no compulsion on the co. to pay variable pay. However, technically, one may surely claim her/his variable part as it is a part of TCTC... but still, nature being variable and to be paid on appraisal... it is solely a personal call...
cheers
K

Hi Vijay,
In case you are referring to your variable pay for the 1st one year, which you have already completed(since you said you have completed 1 yr 6 months), you may claim the variable pay. However, if you check your offer letter/letter of appraisal, it would mention the terms of payment for your variable pay-like on completion of probabtion;on completion of a particular period of time;on completion of appraisal etc as welll as terms like -based on performance of individual/company etc. hence the payment is subject to all these conditions and there is no liabitlity on the company to pay it otherwise though they may take a call to pay the same on pro-rata basis-which is totally dependent on the company.

Thank you all.
I did check my offer letter and there is no mention on the payout of variable pay at the time of leaving. However, I have checked with other senior employees who have left the organization and the company has rejected their request to clear their variable pay.
Regards,
Vijay

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