I was working for an IT company, and nowhere in any of the policies does the company mention that the Variable Pay paid at the end of the year is based on Employee Performance. I refused to be a part of the Annual Appraisal Process as my manager was attacking me on a very personal front, and the HR proved to be ineffective to tackle this situation.
At the end of the year, I was not paid this Variable Pay, citing the reason that my performance was below par. Can I take a legal recourse since all efforts at negotiating with people in the organization have failed.
From India, Pune
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At the end of the year, I was not paid this Variable Pay, citing the reason that my performance was below par. Can I take a legal recourse since all efforts at negotiating with people in the organization have failed.
From India, Pune
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Dear Mr. Belgur,
Variable Pay is based on the performance criteria. This is universally accepted in the corporate world. Based on your performance percentage, one becomes eligible to receive the variable pay amount.
However, there is also a minimum limit below which if the performance score is achieved, one does not become eligible for the variable payment/pay for performance. For example, the minimum performance percentage should not be less than 70.
It is the duty of the Divisional Head or HR Dept. to make these performance mapping and variable payment parameters known to all employees (including new joiners) at the beginning of the financial year itself or during the Employee Induction for new joiners.
This enables the employee to plan, evaluate, and improve his performance from time to time. Moreover, if the employee's performance is not as per expectations, it is the duty of the Reporting Manager to discuss and help the employee improve performance with proper training, mentoring, or counseling.
It seems in your case, it has not been done if your company feels that your performance is below par. They should have assessed your performance on a timely basis and should have given you inputs for improvement.
Most companies have an online performance tracking system, which is transparent and an indicator of one's performance.
If your company has failed to communicate about the performance parameters or pointed out your poor performance at the beginning or mid of the year, you can seek legal advice in this case.
I would suggest that before taking legal action, please once again refer to and confirm the Performance Management/Appraisal policies, documents issued to you by the company, as to whether they have indicated about performance; else, the legal action will be ineffective.
Please revert for any further queries.
Regards,
Sumeet
From India, Mumbai
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45Variable Pay is based on the performance criteria. This is universally accepted in the corporate world. Based on your performance percentage, one becomes eligible to receive the variable pay amount.
However, there is also a minimum limit below which if the performance score is achieved, one does not become eligible for the variable payment/pay for performance. For example, the minimum performance percentage should not be less than 70.
It is the duty of the Divisional Head or HR Dept. to make these performance mapping and variable payment parameters known to all employees (including new joiners) at the beginning of the financial year itself or during the Employee Induction for new joiners.
This enables the employee to plan, evaluate, and improve his performance from time to time. Moreover, if the employee's performance is not as per expectations, it is the duty of the Reporting Manager to discuss and help the employee improve performance with proper training, mentoring, or counseling.
It seems in your case, it has not been done if your company feels that your performance is below par. They should have assessed your performance on a timely basis and should have given you inputs for improvement.
Most companies have an online performance tracking system, which is transparent and an indicator of one's performance.
If your company has failed to communicate about the performance parameters or pointed out your poor performance at the beginning or mid of the year, you can seek legal advice in this case.
I would suggest that before taking legal action, please once again refer to and confirm the Performance Management/Appraisal policies, documents issued to you by the company, as to whether they have indicated about performance; else, the legal action will be ineffective.
Please revert for any further queries.
Regards,
Sumeet
From India, Mumbai
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