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TY for the A2A.

Legalese is the least of your problems when it comes to incentive policy. The crux of the issue is to figure out the structure of the incentive policy.

And, from personal experience, that's hard.

In almost all companies I know, the sales department initiates the incentive policy with the simple goal of incenting sales people to sell more. So, the policy starts out being quite simple e.g. incentive will be x % of orders booked during a month. Then the policy goes to other departments like HR and Finance, if not C-Suite. Each department tries to tack on some more objectives to the policy. For example, HR wants to ensure that there isn't too much disparity in compensation between people in the same level of the hierarchy (even if their performance is vastly different), so it will want to insert a clause related to a cap on incentive. Finance wants to ensure profitable growth, so it will want to insert a clause related to product mix or profits. Finance also wants to ensure cash is received, so it will want to insert another clause to the effect that incentive will be payable only upon collection - i.e. after the order is booked, delivered, billed and collected. So and and so forth.

Long story short, the incentive policy that finally gets approved bears little resemblance to the one that was initiated by sales. Then all departments get into a huddle, negotiatons happen, there's some give and take, and eventually a policy that is agreeable to all parties emerges, and it is approved and circulated to sales people. If it sounds a bit complicated, that's because it is - at least in many midsize or large companies.

Not sure what your role in the incentive policy is but if it's to simply draft a clause in the appointment letter and be done with it, your best bet would be to go with a line like "You will be eligible for incentive policy, the details of which will be communicated to you later / once you complete your probation period and are confirmed in the services of the company". It doesn't say much but that's the best you can do if you're not involved in the actual process of formulation and approval of the incentive policy.

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