Umakanthan53
Labour Law & Hr Consultant
Psdhingra
Legal Analyst, Hrm

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Dear Senior,
My wife is working with one IT company in Ahmedabad, In her appointment letter the company has mention to give fixed incentive of Rs. 50000/- annualy. Now they are telling to take Appraisal and after they will release the fixed incentive. After raising issue they are ready to give fixed incentive but on condition that they will reduse her salary by 5000/- per month, is it valid? can we take legal issue on it??
Waiting for you immdiate reply.
Thanks
Bharat

Dear Bharat,
Simply put, for keeping the fixed annual incentive as agreed, reducing the salary by Rs.5000-00 p.m can not be fair by any stretch of imagination. What sort of legal action you expect to be suggested by others when you missed out certain vital informations like the capacity of employment of your wife, the complete details of compensation package offered by the employer etc.

Mr. Bharat,
Salary and incentives are totally different things. Incentive has nothing to do with the regular salary. The incentive is normally performance based and subject to fulfillment of certain conditions. So, if the company has asked to submit self appraisal, that is not wrong. She may give account of her performance in the annual self appraisal to be verified by her superiors. But, if she is not ready to submit her self appraisal, and you think that there is no condition attached to grant of incentive, you may better show the appointment letter to some expert to make proper analysis of the in-built conditions for incentives, if there is any, to advise you appropriately.

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