vishymanor
As an HR, we recruted one Business Development Manager and given appointment letter stating that she is responsible in a particular region/states to develop and increase business. Even after paying their salary for a few months, there is not a single business generated and the company spends thousands on her travel to several states. Even though she committed in writing that she will do this much lakh of business in one month, nothing happened and in next month, we sent a notice mail stating that during your tenure no sales happened and that next month's salary will be based on any sales from her. Since in 3 months not a single business developed and we spend lakhs towards salary and travel, is it okay to hold the salary? We have not given a termination letter to her so far and she demands a salary for the month in which she did nothing. This job is WFH and not from the office.
From India, Bengaluru
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Madhu.T.K
Industrial Relations And Labour Laws

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Madhu.T.K
3769

It is unfair to hold her salary. I used the word "Unfair" because she is a manager and had she been a frontline sales executive, I would have said it is "illegal' to hold the salary.

I can understand that she has not developed any business. But the number "zero" indicates that even before her appointment the situation was very bad. It is only three months since joined and within this three months she has already travelled to various states and obviously, the result will come in the months to come. Therefore, you should give her at least the probation time to show the result. But before that holding the salary is just equal to terminate her. I am sure there should be some issue with your product and that is why the result is not coming. Therefore, my advice is to study the market and see if the market requires your product or not and then take a call.

It is also unfair to change the service conditions like the salary pattern or its structure from fixed to fully variable (based on the units sold) within a very short period of time.

From India, Kannur

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