Many have asked me about their bonus woes, and here are my responses.
Woes: If I tender resignation, will I still be entitled to a bonus payout?
Response: From my experience, most likely not. A bonus is not a mandatory wage, so the company can determine the terms and conditions of distributing it unless it’s specified in a collective agreement. For example, in my previous company, the offer letter clearly stated that upon tendering your resignation, all bonus, incentive, and commission payouts would be forfeited.
While it’s true that the bonus payouts are for efforts made in the previous year, companies often use them more as retention tools than as reward schemes. So, the advice is always the same – take the bonus first, then tender your resignation.
Woes: If I resign immediately after receiving my bonus payout, will there be any repercussions, like a clawback of the bonus?
Response: From my experience, most likely not. To clawback your bonus, you must have agreed to a bond stipulating a minimum service period, which most companies don’t enforce. When companies decide to give a bonus, they usually want to do so sincerely.
Woes: I did sign a bond for my bonus payout, stating that if I don’t complete 1 year of service post-bonus payout, I must return every cent. Can they demand me to return the money?
Response: Like most employment bonds, unfortunately, yes, they can. One strategy is to not use the money until the bond period matures; you could put it in a fixed deposit (FD). A comforting thought is that a bonus is extra money, so it’s not something we rely on anyway. Alternatively, you could negotiate with the company to pro-rate the penalty. If you’ve already served 6 months, perhaps they could penalise just half. I know someone who managed to get the company to waive the entire penalty as part of a deal to complete a project before leaving.
Navigating the woes of bonuses can be tricky, but with the right knowledge, we can make informed decisions. Keep striving and thriving for our bonus!
#BonusTalk #WorkplaceWisdom #AuntyHR
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