Managing Non-Payment of Performance Incentive Due to Poor Performance: Sample Letter and Justificati

Dear All,

I need a sample letter for informing the employee that we will not pay the performance incentive due to poor performance. The employee has resigned, accepted the full and final settlement, and is now claiming the incentive.

There are two basic questions: Is it a performance incentive for all the employees based on the performance of the unit/company, or an incentive to be given to any individual based on his/her performance during a specific and defined period? If the company/unit has not performed well against the pre-decided goals, then a common circular in this regard is good enough to notify the non-payment of performance incentives. In the case of an individual, it needs to be justified based on facts and figures why, under the circumstances, the same is not payable. Every action needs to be justified to the extent that it should not be construed as a malafide intention by any individual.

Regards