Regarding yearly incentives
We received our incentive letter . mine stated that I received a R31000 incentive the letter is signed by our general manager . 24 hours later we got called in and told that they have used a outdated formula to get the totals . Apparently a letter was sent out 5 years ago and our branch supposedly never got the letter . All of a sudden they now use a new formula and my incentive is now cut with R9000. This after I have a signed letter stating that I will get R31000 now I’m getting R22000 are they allowed to do this ? This is affecting my whole department
Category: Labour and Employment, General
Region: South Africa, Eastern Cape
1 Answer
Many thanks for your enquiry. Incentives usually do not form part of your basic salary structure. Hence companies regularly have to adjust their formula’s to keep in line with their operational requirements. However all employees should be kept abreast of these changes to avoid situations such as you have found yourself in. To amicably solve this the best approach would be to address the company’s failure in respect of your branch through the Union. If the operational requirements inevitably require the restructuring then they are entitled to do this. Good luck.