Dear folks,
A person who worked as a marketing executive for 8 years, from May and June 2018, could not work properly, and his performance was also "zero," resulting in no revenue for the company. Consequently, the company decided to terminate his services, which was conveyed to him by us. He immediately submitted his resignation, which was accepted by us. However, the salary for these two months has not been paid yet due to non-performance.
Although we have settled all other dues, such as incentives, bonuses, and gratuity, the salary remains outstanding. The PF contribution for these two months has been paid. The individual is now demanding his two months' salary and has threatened to take the matter to the labor tribunal if not paid.
The dilemma we face is how to address this issue considering that the owner is unwilling to settle the outstanding salary.
Thank you.
From India, Madras
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A person who worked as a marketing executive for 8 years, from May and June 2018, could not work properly, and his performance was also "zero," resulting in no revenue for the company. Consequently, the company decided to terminate his services, which was conveyed to him by us. He immediately submitted his resignation, which was accepted by us. However, the salary for these two months has not been paid yet due to non-performance.
Although we have settled all other dues, such as incentives, bonuses, and gratuity, the salary remains outstanding. The PF contribution for these two months has been paid. The individual is now demanding his two months' salary and has threatened to take the matter to the labor tribunal if not paid.
The dilemma we face is how to address this issue considering that the owner is unwilling to settle the outstanding salary.
Thank you.
From India, Madras
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Getting leads and converting them into business is not possible daily. So, if the employee has already resigned and separated from your organization, then pay the balance of 2 months' salary and close the issue. This will help the organization to maintain goodwill before other employees.
If the salary issue needs to be addressed, it should have been done before accepting the resignation. It is now better not to dissect the resignation and salary matters. This is my personal view.
From India, Pune
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494If the salary issue needs to be addressed, it should have been done before accepting the resignation. It is now better not to dissect the resignation and salary matters. This is my personal view.
From India, Pune
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Please be clear that salary cannot be stopped.Performance incentive based on performance can be stopped or awarded,but salary has to be paid. What incentive was paid?
From India, Pune
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From India, Pune
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Whereas, we have given all kinds of settlements such as Incentives, Bonus, Gratuity except salary.
How could you pay the PF contribution for these 2 months, whereas the employee has zero income? You are directly accepting that the person had earned wages from which you realized the EPF contribution and submitted it with EPFO.
It would be wiser to settle the issue before getting into a bigger problem. You cannot abscond from the case under payment of wages if a case is filed. It would be wiser to pay wages for the period to avoid future complications.
Wages are never paid based on the performance of a workman unless there is a clear-cut terms of condition in the appointment letter or otherwise futile.
From India, Mumbai
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How could you pay the PF contribution for these 2 months, whereas the employee has zero income? You are directly accepting that the person had earned wages from which you realized the EPF contribution and submitted it with EPFO.
It would be wiser to settle the issue before getting into a bigger problem. You cannot abscond from the case under payment of wages if a case is filed. It would be wiser to pay wages for the period to avoid future complications.
Wages are never paid based on the performance of a workman unless there is a clear-cut terms of condition in the appointment letter or otherwise futile.
From India, Mumbai
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Thanks for kind explanation on this issue. Mr. Nathrao - Sales incentive paid for 2017 & 2018 based on his performance.
From India, Madras
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From India, Madras
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Wages are the right of an employee and are never linked with performance because of statutory payments made on behalf of wages. Therefore, you can't deduct or withhold the salary. Please pay the same and release him as soon as possible before he goes to any tribunal.
Thanks
From India, Delhi
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Thanks
From India, Delhi
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Dear Colleague,
You will be digging your own grave if you don't pay his salary. Monthly salary is paid for attendance and doing normal work, and incentive payment is paid for targeted performance and the extent of its achievement. Both are different. The question is rightly asked as to how did you pay PF contribution without paying salary. It is illegal in the absence of payment of salary. Don't be vindictive with the employee. Withholding salary presumably without giving an opportunity to explain reasons for non-performance and unilaterally punishing the employee in this manner will fail to stand legal test and is bound to boomerang on you. So settle this with grace and be done with it.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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You will be digging your own grave if you don't pay his salary. Monthly salary is paid for attendance and doing normal work, and incentive payment is paid for targeted performance and the extent of its achievement. Both are different. The question is rightly asked as to how did you pay PF contribution without paying salary. It is illegal in the absence of payment of salary. Don't be vindictive with the employee. Withholding salary presumably without giving an opportunity to explain reasons for non-performance and unilaterally punishing the employee in this manner will fail to stand legal test and is bound to boomerang on you. So settle this with grace and be done with it.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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I fail to understand how incentive has been paid when there is no performance.This act itself is self defeating,requiring you to pay the held up salary.
From India, Bengaluru
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From India, Bengaluru
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Even otherwise, salary and incentive are two different things and should be treated separately. Similarly, the payment towards PF when there is no salary - how can it be paid?
So, I agree with all my fellow contributors to this query that the best way is to pay up and let bygones be bygone. Start with a fresh slate.
From India, Bengaluru
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So, I agree with all my fellow contributors to this query that the best way is to pay up and let bygones be bygone. Start with a fresh slate.
From India, Bengaluru
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Employee Performance.pdf