It’s that time of the year again.
Companies are wrapping up their financial performance and decide how much bonus to give.
Or not.
First, let’s get the legal bit out of the way.
In Malaysia, bonus is not a mandatory wage.
Which means companies are generally free to decide if, when, and, how bonuses are paid, unless it’s explicitly stated in your employment contract or collective agreement.
One of the most common questions I get is this:
“If I’ve already resigned but I’m still serving notice, am I entitled to bonus?”
The answer: It depends entirely on company policy.
In many (not all) organisations, once you tender your resignation, bonuses, incentives, and commissions are often withheld or forfeited.
Because over the years, bonuses have evolved from a reward into a retention tool.
For example, in my previous company, the policy was very clear.
Once you resign, bonus, incentives, and commissions are forfeited.
Now, I understand why this upsets people.
The argument usually goes like this:
“I delivered results for the previous year. I held up my end of the bargain. Why am I being penalised for choosing to leave?”
I don’t disagree with the sentiment.
But unfortunately, legally speaking, that’s how it works.
I’ve also heard of more aggressive practices. Bonuses paid in instalments. Or bonuses with clawback clauses, where employees are bonded for 6 or 12 months and required to refund the bonus if they leave early.
Fun Fact: One of my own bosses once suggested implementing a bond.
I was equally quick to suggest…. not doing that.
And I’m glad he listened.
Here’s my personal take.
If any of you bosses out there have decided to give a bonus, give it sincerely. As a reward.
If the only way to keep people is by financially trapping them, then retention isn’t really retention.
I honestly see it as delayed resignation.
There are better ways to retain employees.
But that’s a conversation for another post.
For now, read your contract. Read your policy.
And never assume bonuses are guaranteed just because you worked hard.
Otherwise, the smartest move is wait until the money is in your bank…
Then only you decide to ciao.
xoxoxo, AuntyHR
