Eligibility for Variable Pay During Probation: Should Resigned Employees Receive It?

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Dear All, I would like to bring a prospect for a discussion.

Eligibility for Variable Pay During Probation

There was a senior management employee who joined a company and worked with it for about 4 months. His performance was found to be good; however, due to his interest in another sector of business, he has left the company. The company had agreed with him on a salary along with variable pay (10% of Salary) at the time of his joining. During his 4-month tenure, no KPIs were set as he was under the probation period. The employee submitted his resignation in the third month of employment and served his notice period as per the terms agreed upon in the appointment order.

The point that arises here is whether he is eligible for the variable pay on a prorated basis or if he is not eligible for such payment.
KK!HR
Since reportedly, the agreement was to pay variable pay at 10% of the salary, it is payable as the performance has been deemed good. Framing KPIs is a management activity and cannot be used as a reason for non-payment of variable pay.
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