Delay in Full and Final settlement Dues - term mentioned annual performance incentive (20% of annual salary) which is not cleared

Dear Seniors,

I was associated with the pharma manufacturing unit as an Assistant Manager in Maharashtra. I worked here from May 2015 to February 2020. I submitted my resignation in February 2020 and completed all exit formalities, including the no dues document and the application for gratuity claim to process the full and final settlement. However, by the end of November 2020, I had not received any update on the full and final settlement or cleared dues.

Based on the company's past behavior, the employer seems reluctant to clear dues if they are required to pay the employee. Furthermore, if there were any outstanding recoveries, the employer continuously insists on paying the recovery amount first before issuing the experience and relieving certificates.

According to the appointment letter, the salary breakup terms mentioned an annual performance incentive (20% of annual salary) which has not been cleared for any completed year (FY 2015/16, 2016/17, 2017/18, 2018/19, 2019/20). Despite inquiring about this multiple times during my employment, I have not received a satisfactory answer.

I am seeking legal advice regarding the aforementioned situation. My expectation is to clear the full and final settlement with gratuity claim and performance incentive only.

I kindly request expertise in advising and guiding on the above issue.

Thank you.

It appears you are entitled to gratuity subject to continuous service of 240 days every year from 2015 to 2020. However, as regards performance incentives, legally speaking, there is a limitation of three years unless you have been continuously asking for it after the first year onwards.