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Dear Professionals
I have a query, a Empoyee worked i an organization from 2009- Mid July 2022 (14 Years) in the same organization, he was holding a mid level position and was eligible for Variable pay. VA period is from July 21-June'22 and pay out is on July'22.

And he served notice period from 16 May'21 to 15th July 22 -Two months as per policay and got relieved on 15th July and it was an agreed and mutual exit.

He received is salary for worked 15 days in July .But the variable pay was not paid.He was told that he is not eligible because he is not ON ROLL during the payout MONTH .And there is no written policy or oral or communication on the same to any employees till date.

Please let me know your inputs IF THE EMPLOYEE IS ELIGIBLE FOR VARIABLE PAY..


Partner - Risk Management
Plant Hr Head
Management Consultancy
+1 Other

Hi Professionals,Has anyone come across this situation.Can someone guide me on this.


The stand that an employee serving notice period is not on the rolls is patently wrong and grossly unjust. The employee is on the rolls of the company till he is relieved and that would extend to the midnight of that day.
The rules and regulations of the company would apply to the employee till he is finally relieved from service. As far as the organisation is concerned the revised VDA applies from July 1 and the old VDA ceases to apply on 30th June. There cannot be a selective extension of benefits to those continuing in the organisation and deny it to the employees on notice period. This is discriminatory and patently illegal.

I know that there is a widespread practice of denying many due benefits to resigned employees but it is incorrect and illegalk.

From India, Mumbai

Variable pay is also the part of CTC then it must be paid to concern employee. yes its other thing that it may be differ according to his performance or as per standard for Variable pay. but not paying is injustice .
From India, Rudarpur

This is actually a software error or deficiency.
Logically, the HR Manager should speak to accounts and get the amount paid.

Since the employee has worked for a long time, it would be better if he could just speak to a senior manager and try to get it resolved. Trying to take a legal route for a half month variable pay is a bad idea, specially since the new company will come to the old one for a BGV. So it is always good to work it out on a good note.

From India, Mumbai
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