Hi, This is reference to the variable pay which is a part of my CTC. The company performance cycle is from April-March and the pay out is is in July. As per the contractual agreement I am eligible for the performance linked bonus of 80% of my CTC and 20 % as per the company performance. I understand that the company's performance will only be established once the books close in March'19.
I have been employed with the org since 2008. I left the org. in Mid Dec'18.
My question -
Since I have been a meeting expectation performer since April'18-Dec'18 , Am I eligible for the bonus payout, If yes, what would be the approach.
Pls let me know in case any additional details are required.
From India, New Delhi
I have been employed with the org since 2008. I left the org. in Mid Dec'18.
My question -
Since I have been a meeting expectation performer since April'18-Dec'18 , Am I eligible for the bonus payout, If yes, what would be the approach.
Pls let me know in case any additional details are required.
From India, New Delhi
If you have left the organization in mid-December 2018 and the company's performance cycle is from April to March with payouts in July, here's how your eligibility for the bonus payout typically works:
1. **Eligibility Criteria**: Usually, eligibility for performance-linked bonuses or variable pay is contingent upon being employed with the organization at the time of payout. Since you left in December 2018, you may not typically be eligible for the bonus payout for the financial year ending March 2019, unless specified otherwise in your employment contract or policy.
2. **Prorated Eligibility**: Some organizations prorate bonuses based on the duration of service during the performance period. This means if you were employed for a significant portion of the financial year (April 2018 to March 2019), you might be eligible for a prorated amount of the bonus. However, this entirely depends on the company's policies.
3. **Contractual Agreement**: You mentioned a contractual agreement specifying eligibility for 80% of CTC based on individual performance and 20% based on company performance. This agreement should outline the conditions under which the bonus is paid, including eligibility criteria and payout conditions. Review this agreement carefully to understand your entitlements.
4. **Company Policy**: It's crucial to refer to the company's bonus policy or HR guidelines regarding eligibility and payout conditions. These policies typically specify the timeline, eligibility criteria, and calculation method for bonuses.
5. **Communication with HR**: Since your situation involves specific dates and performance expectations, it would be advisable to communicate directly with the HR department of your former employer. Seek clarification on your eligibility based on your performance ratings and duration of employment during the financial year in question.
6. **Legal Advice**: If you believe you are entitled to the bonus per your employment contract but the company denies it, you may seek legal advice to understand your rights and options for recourse.
In summary, while you may have been a meeting expectation performer during April to December 2018, your eligibility for the bonus payout for the financial year ending March 2019 depends on your employment status at the time of payout and the specific terms outlined in your employment contract and company policies. Direct communication with HR is recommended to clarify your entitlements.
From India, Guwahati
1. **Eligibility Criteria**: Usually, eligibility for performance-linked bonuses or variable pay is contingent upon being employed with the organization at the time of payout. Since you left in December 2018, you may not typically be eligible for the bonus payout for the financial year ending March 2019, unless specified otherwise in your employment contract or policy.
2. **Prorated Eligibility**: Some organizations prorate bonuses based on the duration of service during the performance period. This means if you were employed for a significant portion of the financial year (April 2018 to March 2019), you might be eligible for a prorated amount of the bonus. However, this entirely depends on the company's policies.
3. **Contractual Agreement**: You mentioned a contractual agreement specifying eligibility for 80% of CTC based on individual performance and 20% based on company performance. This agreement should outline the conditions under which the bonus is paid, including eligibility criteria and payout conditions. Review this agreement carefully to understand your entitlements.
4. **Company Policy**: It's crucial to refer to the company's bonus policy or HR guidelines regarding eligibility and payout conditions. These policies typically specify the timeline, eligibility criteria, and calculation method for bonuses.
5. **Communication with HR**: Since your situation involves specific dates and performance expectations, it would be advisable to communicate directly with the HR department of your former employer. Seek clarification on your eligibility based on your performance ratings and duration of employment during the financial year in question.
6. **Legal Advice**: If you believe you are entitled to the bonus per your employment contract but the company denies it, you may seek legal advice to understand your rights and options for recourse.
In summary, while you may have been a meeting expectation performer during April to December 2018, your eligibility for the bonus payout for the financial year ending March 2019 depends on your employment status at the time of payout and the specific terms outlined in your employment contract and company policies. Direct communication with HR is recommended to clarify your entitlements.
From India, Guwahati
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
VARIABLE PAY.doc
More Fixed-To-Variab le Pay HR Trend in Corporate World.pdf