It has been more than an hour since I have been trying to find a solution for this query, but I have found nothing relevant. The situation is a bit complicated, so let me share it with you, and I would appreciate getting a proper solution for this. Please correct me if I am wrong in my thinking on this matter.
Background on Back-Office Incentive
In my previous company, there was a practice of providing an annual back-office incentive to employees, with the period starting from April of the current year to March of the subsequent year. However, until the end of October, this incentive amount had not been paid to the employees.
Claiming the Incentive Post-Resignation
I recently resigned from there, and now in my full and final settlement, I am claiming that back-office incentive. Although, as far as I remember, such a practice was mentioned in the Terms & Conditions of the appointment letter, later this clause was changed at the time of confirmation of service with the company.
HR is stating that resigned employees are not eligible to receive the office incentive.
Now, please confirm whether I can also claim that amount in my Full & Final settlement. I would be grateful if any examples or relevant clauses from an act could be shared on this matter.
Thank you.
From India, Delhi
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23Background on Back-Office Incentive
In my previous company, there was a practice of providing an annual back-office incentive to employees, with the period starting from April of the current year to March of the subsequent year. However, until the end of October, this incentive amount had not been paid to the employees.
Claiming the Incentive Post-Resignation
I recently resigned from there, and now in my full and final settlement, I am claiming that back-office incentive. Although, as far as I remember, such a practice was mentioned in the Terms & Conditions of the appointment letter, later this clause was changed at the time of confirmation of service with the company.
HR is stating that resigned employees are not eligible to receive the office incentive.
Now, please confirm whether I can also claim that amount in my Full & Final settlement. I would be grateful if any examples or relevant clauses from an act could be shared on this matter.
Thank you.
From India, Delhi
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Dear VSL,
Can you clarify two things:
Incentive Release Period
1. In which month/quarter is the incentive for April to March released according to the clause of your policy?
Policy on Forfeiture
2. What does your policy state regarding forfeiture? For example, an employee working during the financial year is eligible for an incentive on a pro-rata basis for the tenure worked and will be payable as above. But if the employee resigns during the same financial year, the entire incentive amount is forfeited. Is there anything mentioned regarding this? If yes, you are eligible for the incentive and surely can claim it.
Regards,
From India, Ahmedabad
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Can you clarify two things:
Incentive Release Period
1. In which month/quarter is the incentive for April to March released according to the clause of your policy?
Policy on Forfeiture
2. What does your policy state regarding forfeiture? For example, an employee working during the financial year is eligible for an incentive on a pro-rata basis for the tenure worked and will be payable as above. But if the employee resigns during the same financial year, the entire incentive amount is forfeited. Is there anything mentioned regarding this? If yes, you are eligible for the incentive and surely can claim it.
Regards,
From India, Ahmedabad
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As mentioned by Ms. Hiral, please clarify a few things:
1. What was the clause mentioned in the Appointment Letter?
2. What were the changes thereafter on confirmation?
3. Is it a performance-based incentive?
From the above criteria, if you are eligible for the incentive, then you can certainly claim it.
From India, Ahmadabad
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1. What was the clause mentioned in the Appointment Letter?
2. What were the changes thereafter on confirmation?
3. Is it a performance-based incentive?
From the above criteria, if you are eligible for the incentive, then you can certainly claim it.
From India, Ahmadabad
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Actually, I don't have a copy of my previous employment terms and conditions (T&C) presently. But I remember clearly that they mentioned that based on your satisfactory performance, you will be given annual increments or incentives. I do not possess the T&C of the confirmation letter.
Answering Queries Raised by Mr. Mehta
1. They give incentives as per the fiscal year, and normally it is given at the time of Diwali.
2. I am sure they don't have standing orders either, and in the terms and conditions of the appointment, they did not mention anything related to seizing the incentive amount post-resignation.
Answering Questions Posted by Mr. Saji
1. The condition I have mentioned above.
2. I don't have the T&C of the confirmation letter now.
3. Face value and subjectivity are taken into consideration while deciding on the back-office incentive amount, and the tenure of the employee is also taken into account. For example, if an employee has been good at work and has worked between 3-4 months, he may be given 1/4 or 1/2 of the total amount, subject to the respective grade of the employee.
Please comment further on this...
From India, Delhi
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Answering Queries Raised by Mr. Mehta
1. They give incentives as per the fiscal year, and normally it is given at the time of Diwali.
2. I am sure they don't have standing orders either, and in the terms and conditions of the appointment, they did not mention anything related to seizing the incentive amount post-resignation.
Answering Questions Posted by Mr. Saji
1. The condition I have mentioned above.
2. I don't have the T&C of the confirmation letter now.
3. Face value and subjectivity are taken into consideration while deciding on the back-office incentive amount, and the tenure of the employee is also taken into account. For example, if an employee has been good at work and has worked between 3-4 months, he may be given 1/4 or 1/2 of the total amount, subject to the respective grade of the employee.
Please comment further on this...
From India, Delhi
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Well, with no conditions mentioned, the policy seems to be vague and completely at management's discretion. You can ask them for a copy of the incentive policy/terms and conditions if you feel you've missed remembering certain points and act accordingly.
If the incentive is disbursed during Diwali, remember that it is gone :)
From India, Ahmedabad
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If the incentive is disbursed during Diwali, remember that it is gone :)
From India, Ahmedabad
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I agree with the opinions posted earlier, especially that of Hiral Mehta, that "the policy seems to be vague and completely at management's discretion."
In any case, other than workmen or those falling under the protection of labor legislation, such benefits are not enforceable, and everything is discretionary. You must have heard the famous saying, "show me the man, and I'll tell you the rule."
Since you have mentioned that it is given during Diwali, it appears that your resignation must have been put up before Diwali. That explains your exclusion from the list of beneficiaries of this incentive.
It's nice to see that you have taken it sportingly. Wish you all the best with your new assignments.
Warm regards.
From India, Delhi
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In any case, other than workmen or those falling under the protection of labor legislation, such benefits are not enforceable, and everything is discretionary. You must have heard the famous saying, "show me the man, and I'll tell you the rule."
Since you have mentioned that it is given during Diwali, it appears that your resignation must have been put up before Diwali. That explains your exclusion from the list of beneficiaries of this incentive.
It's nice to see that you have taken it sportingly. Wish you all the best with your new assignments.
Warm regards.
From India, Delhi
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Incentive Revocation and Employment Contract Termination
The point is, the incentive can be revoked, depending on how the company is performing. When you resign, the employment contract is terminated. However, if the company does recognize your contribution (i.e., you left peacefully), then there might be a case for you to be paid this incentive. It is a very subjective matter that, in my view, is not enforceable.
From Tanzania, Dar Es Salaam
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The point is, the incentive can be revoked, depending on how the company is performing. When you resign, the employment contract is terminated. However, if the company does recognize your contribution (i.e., you left peacefully), then there might be a case for you to be paid this incentive. It is a very subjective matter that, in my view, is not enforceable.
From Tanzania, Dar Es Salaam
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I agree with what others have said. Just a point of academic interest: the terms given during confirmation will override terms given in your appointment letter. You are free to accept or reject the terms. If you reject the changes, you end up without a job :) The change in terms of employment would not be unilateral only if you are covered by the Industrial Dispute Act and have the support of the union on it.
From India, Mumbai
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From India, Mumbai
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Bonus Payment Obligation
Hello Everyone, I had a similar situation. I was employed as a Business Analyst with a firm from June 1, 2016, to June 1, 2017. I submitted my resignation on May 3, 2017, while the company paid the performance bonus for the fiscal year to every eligible employee on May 17. I was serving my notice period when the incentive was disbursed. My payroll account shows a payslip with my bonus details uploaded, but it has not been paid to me yet. I contacted HR, and they informed me that the bonus is variable and not paid to resigning employees.
Claiming the Bonus
My question is, is the company obligated to pay me since they have already generated a payslip with the bonus details? If so, how should I go about claiming it? By the way, I also checked my appointment letter, and there is no mention of incentives not being paid to employees who resign.
Thank you.
From India, Mumbai
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Hello Everyone, I had a similar situation. I was employed as a Business Analyst with a firm from June 1, 2016, to June 1, 2017. I submitted my resignation on May 3, 2017, while the company paid the performance bonus for the fiscal year to every eligible employee on May 17. I was serving my notice period when the incentive was disbursed. My payroll account shows a payslip with my bonus details uploaded, but it has not been paid to me yet. I contacted HR, and they informed me that the bonus is variable and not paid to resigning employees.
Claiming the Bonus
My question is, is the company obligated to pay me since they have already generated a payslip with the bonus details? If so, how should I go about claiming it? By the way, I also checked my appointment letter, and there is no mention of incentives not being paid to employees who resign.
Thank you.
From India, Mumbai
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