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I was working for an IT Company and nowhere in any of the policies does the company mention that the Variable Pay paid at the end of the year is based on Employee Performance. I refused to be a part of the Annual Appraisal Process as my manager was attacking me on a very personal front and the HR proved to be ineffective to tackle this situation.
At the end of the year I was not paid this Variable Pay citing the reason that my performance was below par. Can I take a legal recourse since all efforts at negotiating with people in the organization have failed.

Dear Mr. Belgur,

Variable Pay is based on the Performance criteria. This is universally accepted in corporate world.Based on your performance % one becomes eligible to receive the variable pay amount.

However there is also a minimum limit below which if performance score is arrived,one does not become eligible for the variable payment/pay for performance.e.g. Minimum Performance % should not be less than 70.

It is the duty of the Divisional Head or HR Dept. to make these performance mapping and variable payments parameters known to all employees (includling new joinees) at the beginning of the financial year itself or during the Employee Induction for new joinees.

This enables the employee to plan, evaluate and improve his performance from time to time. Morever if the employee's performance is not as per expectations,it is the duty of the Reporting Manager to discuss and help the employee improve performance with proper training,mentoring or counselling.

It seems in your case,it has not been done if your company feels that your performance is belo par.They should have assessed your performance on tmely basis and should have given you inputs for improvement.

Most of the companies have a online performance tracking system, which is transparent and a indicator of ones performance.

If your company has failed to communicate about the performance parameters or pointed out at your poor performance at the begining or mid of the year,you can take legal advice in this case.

I would suggest you that before taking a legal action,please once again refer and confirm on the Performance Management / Appraisal polices ,Documents issued to you by the company as to anywhere they have indicated about performance else the legal action will be ineffective.

Please revert for any further queries.

Regards,

Sumeet

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