Considerations for Reward Distribution
Please note that all rewards of the nature mentioned by you are being given for past work and performances. Even if the person concerned is leaving, they should receive the benefit in my opinion. I believe that by doing this, a company sends out fair play signals, has better chances of longer retention, and more engaged employees. New employees are also attracted to join because of the demonstrated fair play.
Resource Allocation and Employee Retention
However, the flip side to consider is that the company has limited resources. The bonuses and rewards are provided to employees for motivation and retention. If an employee has already decided to leave (and the departing individual does go for an improved salary), then why not utilize the resources for the existing employees? This approach encourages employees to announce separations post the increment disbursal. There are numerous examples of people leaving after the increment period.
Legal Obligations and Employee Relations
Legally, the bonus amount is supposed to be paid to an ex-employee if they meet the legal requirements. By bending the rules for the non-unionized employees, we are encouraging them to become dissatisfied or form associations for better bargaining power.
I hope this helps you.
Regards,
Suman Singh
Founder Director
Sumantrana Advisory Services - Your HR Help Desk.