Stuck Without Pay: How Can Employees Legally Claim Their Variable Pay and Salary Increments?

Hello, Company X has not paid any of its employees their variable pay for between 18 and 12 months. They have set almost 40% of CTC as variable pay and make the employees wait endlessly. If employees decide to leave, the company policy states that they lose all of the 40% variable pay (amounting to lakhs for most employees).

Additionally, with the appraisal cycle in January, the company has not provided updated salaries to employees even in March. There is no clarity on when the new salaries will be released, and there is no clear person to contact. Employees seeking information are directed to different HR departments for months on end.

What can the employees of the organization do legally to ensure that they receive their dues?

Thanks in advance.

You can make a joint complaint to the State Labor Commissioner or raise a dispute under Section 2(k) of the Industrial Disputes Act, 1947, to the area Conciliation Officer.