Performance reward being denied post resignation - feel that is unfair for a listed company

Hi, I was working with an Indian company as an Area Sales Manager for 2 years (Jul '17 to Jun '19). During the period of Apr '18 to Dec '18, there was a performance reward program in the company where I achieved my targets and was eligible for the reward. However, it wasn't released until I resigned in May '19. Now (Jun '19), I have been relieved from the company, and my teammates who are still working there have received the reward amount. I was also eligible for it but have not been paid. When I raised this issue with HR, they cited a policy that the reward wouldn't be paid.

When I asked for an explanation about which policy they were referring to, they weren't clear. Later, they mentioned it was a management decision not to release the reward for resigned employees. My argument is that the reward was supposed to be given for an achievement, which was met, and the company benefitted from it. However, now it is denying the employees their rightful rewards. I believe it is unfair for a listed company to treat an employee in this manner.

I attempted to contact the HR head of the company, but he was unwilling to speak with me directly and had his assistant convey the message. I feel I am not being given an opportunity to discuss this matter within the company. What is the best course of action for me now? The incentive/reward amount is significant for me to simply forget and move on.

Note: I have official email copies outlining the reward structure, targets, and achievements. There was no official communication regarding the reward amount post-achievement until after I had resigned. Subsequently, employees were notified via email upon the reward release, but I missed out as I had already resigned by that time.

Hello friend,

You may send a claim, an official claim quoting the incentive structure, if you could exactly calculate how much you are eligible for based on the certified achieving the target. Wait for about 15 days. Then remind them. Before this action, ensure you got all other docs, such as relieving letter, experience certificate, originals of your credentials, etc., from them. How about your F & F settlement money, have you received them all? If a substantial sum is due, you can even send a legal notice. Beyond this, it's not worth pursuing further. It's obvious and in practice that once an employee leaves an organization, such payments are seldom released, which they are rightly due.

Hi,

I understand your frustration regarding the non-payment of a performance reward. In general, the commonly followed practice among companies is that performance bonuses/rewards/incentives are not part of the fixed gross salary but are shown as variable salary or as additional income apart from the salary.

Although you became eligible for a performance reward for the period (Apr 2018 to Dec 2018), it was not paid to you even though you were with them until Jun 2019. I am not sure if you received any official communication about your achieved targets and the amount you were eligible for due to your target achievement. If they have indicated the said amount in your earnings and then kept it on hold (under deductions), the employer is obligated to pay it.

If the performance reward is not part of the salary and the company typically announces such reward programs from time to time, you cannot demand the same from your employer but can request them to release it. However, now it is at the discretion of the employer whether to pay it or not. Since you are no longer with the company, they may choose not to consider it, in my opinion.

Thanks for the swift reply, Mr. Kumar.

I have been in communication with my head HR department and have also sent several emails requesting the incentive while I was still serving my notice period. However, I have not received any official replies to any of the emails. The response remained the same whenever we spoke, but there was no written response from them.

My Full and Final settlement is still under process, and since I didn't complete my notice period, I had to bear the compensation for that as well. Everything from my side regarding the Full and Final settlement is completed (No Objection Certificate, No Dues Certificate, and company assets have been submitted).

The due amount is quite substantial (25% of my cost to company), and I have worked hard to achieve the targets. That's why I am putting in all my efforts and trying to recover it.

I genuinely appreciate the time you took to respond to my post.

Hi Mr. Lakshminarayanan,

I really appreciate the time you took to respond to my post. I have received official mail regarding target achievement but didn't receive any communication regarding the incentive amount as I wasn't included in the company sketch when they released it. However, as it was a team incentive (other members of the team had received the amount via mail), I have been requesting information from my HR regarding this, but they are denying it. Since the amount is very substantial and hard-earned, I want to put forth my utmost efforts to obtain it.

My sincere doubt is that when the employer hasn't provided any policy communication regarding this but denies it orally, is it fair? And is it within the bounds of the law?

Yes, you are right. When this much hard-earned money is in doubt, it's natural to get agitated. There is nothing wrong in taking it up strongly with the concerned party. At the same time, I wish to caution you. Whatever action is at your disposal or you are prepared to take in this respect, you shouldn't risk your Full and Final (F&F) settlement. I mean to say you shouldn't serve as a lame excuse for delaying the F&F process. If it were up to me, I would wait until the F&F is secured. I would suggest that you visit the concerned party and try to urge them to release whatever is possible. In the worst-case scenario, if feasible, you may consider escalating it to the senior-most person who could assist you. Fairness is not an inherent quality with everybody, as you know.

Hi,

I agree with Mr. S. Kumar's viewpoint. Please don't strain the relationship with your past employer until the FFS cheque is cleared into your account. Once the FFS is cleared, escalate this issue to the top officials of your company, including the President or Director, Managing Director level, with a copy to their email IDs.

Present the email politely. Formally brief about how you enjoyed your work with them during the service period, etc. Talk about your contributions and achievements in terms of revenue targets achieved while in service with them. Thank them for the opportunity provided. At the conclusion of the email, subtly request the release of the incentive.

It is all about how we communicate; at times, it may work. I wish you the best of luck in getting the payment.

Thank you very much for your response, sirs.

I'm waiting for my F&F, post which I would be taking up this legally (if possible). Any suggestions on this? Whether to take it up or not. I'm feeling anguished due to the way they are treating an ex-employee who was a performer during the tenure.