Am I Entitled to My Retention Bonus After Being Transferred by Management?

Respected Seniors, I am working with a manufacturing firm, and at the time of joining, there was one component in my salary structure as a retention bonus of Rs. 3000/- per month paid after 3 years. Now I have been moved to another organization with the same MD, who runs both ventures. My question is, am I eligible for the retention bonus amount that has accumulated as I worked for 11 months, considering it was the management's decision to transfer me along with some more employees to this organization?

Thanks and Regards

Before accepting the transfer or relocating to a new workplace, this is a question you need to ask your management. However, I believe that both organizations belong to the same management; therefore, your service will continue uninterrupted.

Regards,
Kamesh

If you are only transferred to another unit without disturbing the existing terms of employment and conditions of service, in my view, you should be eligible for the retention bonus.

Regards,
B. Saikumar

I agree with the views of Sri B. Saikumar. The only thing I would like to add is that if a retention bonus is not payable to the employees in the unit (although under the administrative control of the same Managing Director), at most the management may be liable to pay you a retention bonus on a pro-rata basis, i.e., for only 11 months—the period for which you were posted in the unit where it was payable. However, for this, you may be required to submit an application and obtain a non-payment certificate from the earlier unit's Finance Department to facilitate payment at the new place of posting, only when it has actually been paid to the employees of the unit in which it is payable.

Good luck,

Regards,
AK Jain HR Personnel, NCL, CIL.

Please clarify what is meant by "Moved." Are your services given on lien, or are you re-appointed or transferred, etc.? You must have been given some document. Are there any salary terms mentioned in that document? After checking the terms, please speak to your HR/MD.

Strictly speaking, "another organization" means a different entity. The same MD does not mean the same employer, implying you are working for a new company and hence previous terms will not apply automatically.

Cheers,
Ganesh