In what conditions, variable pay will be deducted other than performance (mainly in HR terms)?

In what conditions, variable pay will be deducted other than performance (mainly in HR terms)?

Variable pay might be deducted in situations beyond performance-related reasons in HR terms, such as:

Policy Violation: Deductions could occur if an employee violates company policies, leading to a reduction in their variable pay.

Attendance Issues: If an employee has excessive absences or tardiness, their variable pay might be impacted.

Misconduct: Variable pay could be reduced for instances of misconduct or behavior not aligned with the company's values.

Breach of Contract: Breaching employment terms could lead to deductions in variable pay.

Quality Issues: For roles with quality-driven metrics, deductions might occur due to subpar work quality.

Customer Complaints: If customer feedback indicates dissatisfaction, variable pay might be impacted.

Ethical Violations: Deductions could result from ethical breaches or conflicts of interest.

Project Delays: For project-based roles, if an employee causes project delays, variable pay might be affected.

Hi,

The other probability is if the employee didn't complete the qualifying period ( if mentioned in the Appointment Order) then there are chances employer holding the variable pay.

If the employee absconds from work then employer might hold the variable pay along with the full and final settlement.