I've recently joined a new company. My previous employer has settled all the dues except a retention bonus which is due for payment in the month I resigned and before to the date I resigned.As per the employment offer letter, retention bonus will be released after completion of every year. I've served the organization total year and resigned later. But my employer is refusing to pay retention as I've submitted resignation.Pls let me know whether I will get the retention bonus or my employer is correct.
From India, Varanasi
Insolvency N Gst Professional
Korgaonkar K A
Recruitment/talent Acquisition, Career Counselling
+1 Other


We do not know in what context your previous employer was paying retention bonus. If it substitutes for Bonus, then you can prefer a complaint against your employer before labour officer of your area.
From India, New Delhi
korgaonkar k a

Dear mvsk,
In this case:
1. Your employer (past) should be governed by POB Act;
2. You should be eligible for bonus as per POB Act. Your Basic / DA component should not be more than Rs.10,000/- p.m.
3. Bonus is payable to you on or before 30.11.2015.
4. It is advised that you should make an application for Bonus as per the provisions of POB Act.
5. As per the provisions of POB Act, minimum Bonus will be Rs. 3500/- and maximum Rs.8400/- presuming you worked for entire year.
6. You should not be discriminated amongst other employees with your past employers on the criteria that you have left the service.

From India, Mumbai
korgaonkar k a

Dear Jagat Kumar ji,
I feel the queriest is not talking about Bonus under the POB Act.
Bonus under the POB Act can not be termed as "Retention Bonus". It seems the retention bonus is paid by the employer as the per terms of his appointment for retaining his employment and the payment of this retention bonus is released after completion of every year.

From India, Mumbai

""You should not be discriminated amongst other employees with your past employers on the criteria that you have left the service.""
You have clearly stated what is the legal position.
But things are not so smooth and that is why we get such queries.
Employers know that an employee may not go to Court for Bonus say it may be Rs5000 or some figure nearby.
The slow judicial system is taken full advantage by employer who has superior resources than any single employee.

From India, Pune

Why trade unions have come up.

i do not intend going into depth and history.

Exploitative practises of employers lead to formation of trade unions.

Once employee gets organised his attitude changes and becomes rather aggressive.

Look at many PSUs,TU are so powerful that management buys peace by keeping silent to poor work output,recruitment of people under TU pressure,merit being casualty etc

Few months ago i read of loaders earning Rs4L per month in FCI. This is an example of TU becoming dominant.

Off course management is hardly bothered as it is tax payer money anyway.

Look at Air India.It runs on loss,but employee privilege of free tickets,allowances are untrammelled.

Loss or no loss tax payer has to bear the expenses.

If one goes by news articles it is shocking as to how AI is run.

Some links to news items:

Air India doles out free air tickets to its employees despite impending loss - The Times of India

Perks of PSU jobs: Generous allowances, soft loans, job security and more - timesofindia-economictimes

On one side in some private sector companies,employees are treated poorly and on other side,employees are king and management can do nothing to make them work.

Many Union members do no work in the office other than loitering in corridors and finding out issues.

This is the inequity which is clearly visible in our corporate environment.

Changing all this only can make India go to greater heights.

So payment of retention bonus-refusal, is a symptom of the environment.

From India, Pune

Hello MVSK,

I am not sure I agree with the other members who responded.

While I can't vouch for this [I am not a legal eagle], I DON'T think Retention Bonus falls under the ambit of the POB Act.

In fact I don't think anything like this is covered under any specific Act/Law in India--this concept still being new to the Indian Work culture.

Here's the Definition of Retention Bonus, as per Wikipedia:

"DEFINITION of 'Retention Bonus' A payment or reward outside of an employee's regular salary that is offered as an incentive to keep a key employee on the job during a particularly crucial business cycle, like a merger or acquisition, or during a crucial production period".

The Bonus that one normally associates with the POB Act is related to PAST work done & the Company's appreciation thereof, Retention Bonus is essentially paid to 'retain' the employee for beyond a particular period--in your case for more than 1 year.

Hence I don't think the Company has erred in not paying the Retention Bonus.

This situation of yours has a similarity to threads posted in CiteHR about resigning BEFORE the Service/Bond Agreement has completed BUT the individual completing the FULL term of the period...albeit some of it during the Notice Period....and the situation/interpretation thereof.

In a similar category would also fall likes of Joining Bonus, etc.



From India, Hyderabad
Hi MVSK, Usually retention bonuses are driven by company policies or exclusive agreements made by the company with the beneficiary employee. You need to see the terms of the retention agreement / letter that was given to you.
Kumar Archit

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