Bonus during notice period
2 years ago
Hi, I am working in this company from last 4 years. Last year they gave a retention bonus of 1 lakh, letter dated 16 July 2021 and it says
"You will not be entitled to payment if you exit the organization before the due date of the retention scheme".
So even if I am in my notice period I haven't exited the company so I should be eligible by that logic. Please give legal advice.
Ankur Goel @ Complete Law Shield
Responded 2 years ago
A.Ideally a person should not resign before completing year of retention.
approach local lawyer with retention bonus letter copy.
approach local lawyer with retention bonus letter copy.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Retention bonus are legal in India and have been allowed as business expenditure under Section 37 of the Act. A retention bonus is usually given to employees on an annual basis, after the completion of every year as a token of gratitude from the company’s side for their loyalty to the organization, therefore, it is dependent on company policy. But in this case, the interpretation of the company is most important since technically you are still employed as you are serving notice period but you have given your resignation. Any concrete legal remedy can be provided after seeing the company police as well as the retention scheme.
If you find this answer helpful please rate my answer. Thank you.
Retention bonus are legal in India and have been allowed as business expenditure under Section 37 of the Act. A retention bonus is usually given to employees on an annual basis, after the completion of every year as a token of gratitude from the company’s side for their loyalty to the organization, therefore, it is dependent on company policy. But in this case, the interpretation of the company is most important since technically you are still employed as you are serving notice period but you have given your resignation. Any concrete legal remedy can be provided after seeing the company police as well as the retention scheme.
If you find this answer helpful please rate my answer. Thank you.
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A.Hi,
Retention bonuses are legal in India, and under Section 37 of the Act, they are permitted as a business expense. As a gesture of appreciation from the company's side for their commitment to the organization, a retention bonus is normally granted to workers on an annual basis, at the end of each year; thus, it is contingent on company policy. However, in this situation, the company's view is critical because you are legally still working because you are on notice, but you have resigned. After seeing the company policy as well as the retention scheme, some concrete legal recourse can be given.
If you find this answer helpful please rate my answer. Thank you.
Retention bonuses are legal in India, and under Section 37 of the Act, they are permitted as a business expense. As a gesture of appreciation from the company's side for their commitment to the organization, a retention bonus is normally granted to workers on an annual basis, at the end of each year; thus, it is contingent on company policy. However, in this situation, the company's view is critical because you are legally still working because you are on notice, but you have resigned. After seeing the company policy as well as the retention scheme, some concrete legal recourse can be given.
If you find this answer helpful please rate my answer. Thank you.
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