Retention Bonus Delays: Are There Rules on When Companies Must Pay?

Hey, I have just completed 3 years working in a steel industry. In my agreement, there was a clause that I will be paid a certain amount after completion of 3 years of service without mentioning the period within which payment is to be made. Are there any regulatory norms which bind them to make the payment in a fixed interval of time?

At the outset, we can say there is no labor law that governs the time period for the payment of such an allowance. At the same time, the payment cannot be inordinately delayed. Please continue writing reminders. If you receive no response, go to the highest officer of the organization and narrate the circumstances in writing. If this, too, fails, then I am afraid that you will have to seek legal remedy.

Thank you, Srikant. Are there any laws currently in effect for such matters?

Dear Mr. Yogesh, I hope you are still working in the same industry. If so, they will be paying this type of special amount within a month's time. You can also inquire about this from your colleagues.

If you have left the organization, then they need to clear this along with your full and final settlement. In either case, you have every right to receive that amount as it is part of your benefits and clearly outlined in your appointment terms. If you can provide more details such as your salary range, designation, employment status, and any specific clauses related to your performance, we can offer you more information.

Thank you.

Kameswarao

Thank you, Kameshwar.

My current CTC is 3.3 LPA with the designation of engineer. I am currently working in the same company. The clause regarding the amount was: "A retention amount of 75K will be paid upon successful completion of a period of 3 years."

Internal Communication for Retention Amount Release

Good to note that you are continuing with the same organization. Hence, I opine that it may not be an issue. In case the time has lapsed by more than a month, it is better to forward an internal communication (a gentle reminder) stating that you have completed your 3 years of service. Kindly request the release of your eligible retention amount at the earliest and oblige. Firstly, remind your HOD and forward the communication with a CC to your HOD.

Check Colleagues' Experience

I also suggest that there may be a practice where your colleagues who have completed 3 years might have received the amount. Inquire and proceed accordingly. Even though writing a communication may not be wrong, it is essential to check the management's practice and take the necessary steps.

Regards, Kameswarao

Actually, our current batch is the first time they have started this retention system, so we will be the first to get paid. Is there any way we can force them to make payment within a specified time limit?