Document Fragment View
Fragment Information
Showing contexts for: performance linked incentive in Vimal Goel vs Goods And Serrvices Tax Network on 30 November, 2023Matching Fragments
1.6. Under clause 6.3 of the performance measurement policy of the defendant, it is provided that the payment of annual performance linked incentives would be made on the basis of the performance score and the performance linked incentive will be paid out in the month of June following the close of the performance year.
1.7. The plaintiff received the performance linked incentive for 37 days of service in 2014-2015. There was no formal performance management system in the defendant till the separation of the plaintiff in March 2016 and therefore, it is clear that the performance linked incentive was just an allocation of salary in different components to reduce the basic pay and in turn reduce the PF and gratuity contribution.
1.8. The plaintiff made repeated requests for release of the performance linked incentive by writing various letters, emails and voice calls from May 2016 and vide email dated 17/09/2016, the plaintiff received a response from the EVP (Support) who heads the HR CS NO.357/17 VIMAL GOEL VS. GOODS AND SERVICES TAX NETWORK page no.4 department of the defendant company giving reasons to the plaintiff as to why the performance linked incentive had not been paid to the plaintiff. In the email, it was stated as follows:
1.9. The aforesaid reasoning given by the defendant was an afterthought and had been adopted for denying the legitimate dues of the plaintiff towards release of the performance linked incentive.
1.10. The reasoning given by the defendant for denying the performance linked incentive to the plaintiff did not resonate with the defendant's HR policy and was in violation of the decision of the board of directors taken in its 20th board meeting held on 30/11/2015 whereby the decision clearly mandates that performance linked incentive had to be paid to an employee as per the following criteria: i) Fixed component (50% of PLI): The fixed part of PLI will be paid to all the employees irrespective of their period of service in that year; ii) Variable component (50% of PLI):
3.4. The performance linked incentive was a monetary incentive given to the employee based on his/her performance at the end of the performance cycle. It was an incentive to the employee to continue to perform well and serve the organisation. As per the defendant's policy, PLI is permissible if the employee is on the roles of the company on the date the PLI is announced and he/she has not submitted his/her resignation. This is more so because it is difficult to assess the employee's performance in case he/she has already left the organisation when the assessment is being done. Since the plaintiff had left before the PLI for 2015-16 was announced, the same was not payable to him.