Performance Pay - Is it legal to hold such an amount? Decision of not paying resigned employees

Hi, My ex-company the MOP i.e. performance pay was part of CTC. for FY21-22 the targets were set, and also against the targets we have shared our accomplishments. Now i resigned from the company on September 22 and my Last working month was Nov 22. The company has decided that those who have not resigned or who are available in service with the organization till Jan-23 can only be given performance pay. Also even if an employee is present till Jan-23 they would get only 50% of performance pay due to some losses. These losses are not part of our performance pay points still it includes all departments.

Is it legal to hold such an amount? And the performance pay decision of not paying for left employees was given on Oct-22. require your help. If not legal what needs to be done?

Thanks in advance.

Dear member,

The "Performance Pay" is an internal matter of the company. Please check the policy of your company. Bring out to the notice of the authorities concerned inconsistencies if any.

The employers are empowered to decide on the performance pay and they can change the policy retrospectively also. The employees cannot do anything if the policies are changed.

The decisions of this kind are taken by the companies who do not care for the image of the company or they do not value the values of the company.

Occasionally, a blame can be laid at the door of the few HR professionals as well. To please their superiors, they give unfair suggestions to their bosses. The ordinary employees are the victims of the unethical or fiendish suggestions.

In life, we have to take in our stride someone's unfairness or even wickedness. At best you can give very negative comments on Glassdoor.com or some other website. But you cannot recover your losses by uploading those comments!

Thanks,

Dinesh Divekar

Performance linked pay or incentive as mentioned by Mr. Dinesh Divekar is absolutely management's prerogative. It has no legal stands. There are organization who are paying it to those employees who are in the pay roll of the organization on the date of disbursement of the money. There are incentive schemes where the certain % of payment will be depend on business result and certain portion on individual performance.

Therefore, nothing can be done in the instant case.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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