Retention Bonus and PLI

Dear Client,
If the retention bonus is expressly provided for in your offer letter or employment agreement and you have fulfilled all the stated conditions for earning it, you have grounds to claim payment. The exact entitlement will depend on the wording of the retention bonus clause, including any conditions relating to continued employment, performance, notice period, or being on the rolls of the company on a specified date.

In contrast, if the PLI (Performance Linked Incentive) is expressly discretionary under the applicable policy, it may be more difficult to compel payment unless the employer has acted contrary to its own policy or contractual commitments.

Before resigning, carefully review the offer letter, bonus policy, and any retention bonus communication to determine:

1. The date on which the retention bonus becomes payable.
2. Whether you must be actively employed on that date.
3. Whether serving notice before the eligibility date affects entitlement.
4. Whether the company has reserved the right to withhold the bonus under certain circumstances.


With a 45-day notice period, the earliest date on which you can submit your resignation depends on the retention bonus terms. If your eligibility date is 20 July 2026 and the policy only requires that you complete two years of service and remain employed on that date, you may consider waiting until after that date before tendering your resignation. However, if the policy requires you to remain employed until the bonus is actually paid, resigning before payment could affect your entitlement.

If the company refuses to pay a contractually promised retention bonus despite your satisfying all conditions, you may consider issuing a formal written demand and exploring appropriate legal remedies based on the contract terms and applicable employment law.
For further legal assistance contact an Advocate.