Retention bonus

Dear Client,

Your query appears to be that the company had agreed to provide you a retention bonus in May 2026, but after sending you an employee separation/resignation mail on 3rd May 2026, the HR department is now refusing to pay the retention bonus even though you are serving the full 90 days’ notice period and your last working day is 3rd August 2026.

In such matters, the entitlement to a retention bonus depends mainly on the terms and conditions mentioned in the retention bonus policy, appointment letter, HR email, or any separate agreement issued by the company. If the condition was that the employee must remain in service till a particular date and you are serving the notice period till that date, then you may have grounds to claim the bonus. However, some companies include clauses stating that employees who resign, are under separation, or are serving notice period may not be eligible for the retention benefit.

You should carefully check:

1. The retention bonus policy/email,

2. Eligibility conditions,

3. Whether notice period employees are excluded,

4. Any clause regarding resignation or separation.


If there is no such exclusion clause and you have fulfilled all required conditions, you may send a formal written representation/email to HR and management requesting release of the retention bonus. In case of unjustified denial, you can approach the labour authority or seeking legal remedy depending upon your employment terms and category of employment.
For further legal guidance contact an Advocate.