Hi All,
In my CTC of salary variable pay is there and mentioned in offere letter that variable pay amount will be paid after financial year ending. But I have resigned the company before financial year ending i.e. in the month of Nov. Now the HR of that company is telling we dont give variable pay because you resigned the company before financial year end.
And they have circuilated one circular in between saying that "variable pay amount is automatically forfeited in case you discontinue your services from the company". But we didn't accept the circular and returned it back.
Please advise me how to get that variable pay amount.
Tx
Ani
From India, Hyderabad
In my CTC of salary variable pay is there and mentioned in offere letter that variable pay amount will be paid after financial year ending. But I have resigned the company before financial year ending i.e. in the month of Nov. Now the HR of that company is telling we dont give variable pay because you resigned the company before financial year end.
And they have circuilated one circular in between saying that "variable pay amount is automatically forfeited in case you discontinue your services from the company". But we didn't accept the circular and returned it back.
Please advise me how to get that variable pay amount.
Tx
Ani
From India, Hyderabad
In case the decision was given by your management and circular was issued much before you resigned then you might have to accept this as a policy of the company. Since such amendments keep happening in Companies and employees cannot have much say in this unless they are part of Management.
Whereas on the other hand, if the circular was issued after you have resigned then you are eligible to receive your variable pay prorated till your last day of work.
From India, Delhi
Whereas on the other hand, if the circular was issued after you have resigned then you are eligible to receive your variable pay prorated till your last day of work.
From India, Delhi
Dear Anil
This Variable Pay is fixed on the basis of your previous performance and it is paid for motivating you for further better performance. Once you have resigned, the company need not to motivate you for your future performance. Hence you cannot claim the same.
This is my contention. Let us expect the opinion/comments from our learned members on this subject.
From India, Kumbakonam
1166This Variable Pay is fixed on the basis of your previous performance and it is paid for motivating you for further better performance. Once you have resigned, the company need not to motivate you for your future performance. Hence you cannot claim the same.
This is my contention. Let us expect the opinion/comments from our learned members on this subject.
From India, Kumbakonam
Dear Anil,
This is upto your company whether they releasy your variable pay / bonus to you or not after your resignation. But in normal case company don't.
Now again, company has right to issue circular and ammendment in policy at any time, whether staffs accepting it or not. But staff can't deny it, otherwise this will be sufficient cause to send them out on disciplinary ground.
Kindly look ahead.
Reg.
Nishant
From India, Suri
This is upto your company whether they releasy your variable pay / bonus to you or not after your resignation. But in normal case company don't.
Now again, company has right to issue circular and ammendment in policy at any time, whether staffs accepting it or not. But staff can't deny it, otherwise this will be sufficient cause to send them out on disciplinary ground.
Kindly look ahead.
Reg.
Nishant
From India, Suri
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
CTC - Variable Component.pdf
CTC Calculator.xls