• Non-performance of legal obligation mentioned in contract

Sir, I was appointed by a company as Regional Manager, Bangalore 2 Region. And as per the contract of employment, I was to be paid the following on completion of one year service:

Bonus : Rs. 2,500/- per month
Variable Pay of Rs. 2,000/- per month.

I joined the Company on 02/01/2012. And in February 2013, I requested the company to honour the contractual obligation. However, the Company informed that the Bonus will be paid as and when it is declared. Variable pay is payable on completion of the Financial Year.

But since the contract does not say any of the above but simply states that Bonus and Variable pay are payable after completion of one year.

In view of refusal to honour the obligations, I resigned from the services and was relieved on 23/02/2013.

On my request to pay the bonus and variable pay, the company advised me that I have forfeited both Bonus and Variable Pay as I am not in services.

Can you please advise me if I may win the case by approaching the Court of Law.

Regards
Asked 10 years ago in Constitutional Law

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1 Answer

Hello,

Thank you for posting your query.

As it appears from the fact situation, you had a contract with a company for payment of variable bonus and variable pay after completion of one year. On the face of it, it appears that the company did not fulfill its contractual obligation by paying you the requisite amount. This falls under the category of a breach of contract for which you can file a civil suit for the amount due against the company.

The chances of winning the case can only be ascertained after an intricate review of the entire documentation including:

1. the letter of appointment;
2. the employment contracts;
3. the notice given to the company by you before resigning;
4. the demand letter sent by you to the company for payment of the outstanding amount;
5. your account balance with the company which might include any outstanding amount between you and the company; and
6. the relieving letter received by you from the company.

After I review the above documents, then I can tell you your chances of winning the case before the appropriate court.

Just to give a heads-up, your case appears to be strong enough, however, in case you approach a court of competent jurisdiction, you will need to pay the requisite court fee, which is a percentage of the amount you're claiming, which is excluding the lawyers' fee and the litigation expense. Hence, I suggest that you get your documents vetted before initiating the above litigation.

Please let us know if you require any further advice.
Thanks and regards

Nishant Bora
Advocate, Jodhpur
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