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Employers persistently seek to implement varied measures in order to retain their talented manpower. These measures can be non-monetary benefits like appreciation certificate, change in title, etc. and monetary benefits like bonus, gift cards, raise in salary, etc. These benefits are aimed to let the employee know that their hard work is recognized and valued by the company.
Incentives are a part of a bonus promised to employees, fundamentally used to motivate them to achieve more productivity and increase their efficiency. Employers offer incentives to their employers to drive them to complete a target or project within the set limit. Incentives comprise of additional benefits like salary raise, bonus, signing bonus, employee stock option and share in company profits.
Performance linked incentives are commonly used by new companies to increase their sales or production. Employees are paid incentives for generating target revenue for the company or completing the set limit of production in the given time.
There is no uniform law on incentives paid by employers in the private sector. The employment laws in India allow employers to define their own incentive schemes and set their own goals and requisites for employees to earn incentives. Every company, plant, shop, and establishment has the flexibility to adapt its own incentive scheme.
However, this does not in any manner affect or reduce the liability of an employer for paying incentives to the employee when it is earned. There have been many cases when the employer has later refused to pay the incentive of an employee after the set goals or targets are achieved. In a situation when the employer refuses to pay incentives, an employee can take the following measures: