Yes please feel you have initiated your resignation well before the completion of the period which give the management a point to raise and hold your bonus please try to sort out the matter amicably as if you are going legal you will be simply sitting at the losing end
Retention bonus issue
I was promised a retention bonus on completion of one year for two years at my current company. (exact words on offer letter) That year got completed at 4th of July. I put my resignation mail on 29th June with one month notice period. But started the process on company's portal on 5th of July. Which was also approved by my manager (3 days are still pending on that notice). Now HR is telling me .that I won't get the retention bonus. I should have stayed till 31st of July to claim it. Can you please tell me from outside perspective if what they are saying is correct.
Asked 6 years ago in Business Law
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8 Answers
1) Actually you need to read appointment letter clauses of retention bonus thoroughly and compare with resignation clause. And let us know what it says exactly
They are right if you have not completed the 2 years as per their dates. Your date of submitting the resignation is counted and not the beginning of processing on their end. However you can issue a legal notice to them if you want and wait for their clarified reply.
Hi, it is advisable to issue them a legal demand notice..Of they fail to comply you can approach labour forum for compensation..
Dear Client,
For payment of bonus accounting is taken into account from company prospective and in other case its completes on 31th march .“accounting year” means - (i) in relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced.
And in all situation your year is completed on 4th July i.e 365 days. HR is wrong .
You cannot be entitled to retention bonus because you put your resignation mail before completion of year. So company is not bound to pay you.
Prima facie, it does not look correct. However, it entirely depends upon the terms of the appointment letter.
There may be a clause for payment of retention bonus i.e., for which period and which is the accounting year for payment of this kind of bonus.
As per the payment of bonus act, it is enough that you had worked for even one month during the accounting year for making the bonus payment.
