Dear All,

I would like to know if the employer delays payment of incentives, what are the ways an employee can force the company to pay out the full amount. Can the employee take any legal action against the employer before resigning? Please suggest suitable methods to resolve this.

From India, Delhi
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The employer-employee relationship is that of partners in production/services, not competitors or rivals. Sometimes, an employer may be unable to pay the agreed incentives due to reasons like insufficient profits. In such cases, repeated reminders and persuasion would be more effective than immediately resorting to legal action. However, this is a general scenario.

Based on your post, it seems you are considering resigning from your job due to your employer delaying payment of incentives. Since incentives are a reward for the services provided by the employee, either individually or collectively, the employer legally cannot deny them because of an individual's resignation. The course of action depends on whether you are classified as a workman or not.

If you are a workman, you have the option to file a claim under Section 33C(2) of the Industrial Disputes Act, 1947, either before or after your resignation. Otherwise, civil action is the only recourse available. It is essential to carefully consider your options before making a decision.

Thank you.

From India, Salem
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RK
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Ms. Ruhi Madan,

Incentive is not part of your regular salary, which your employer can be bound to pay on time. Discretion rests with the employer to pay that at any suitable date. Your proposal to sue the employer on that issue is not good.

From India, Delhi
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