Company refused to pay Retention Bonus as I fall one rating bracket lower than eligibility

I find myself in a situation where I received a retention bonus last year to match my salary. However, this fiscal year, the department's overall ratings decreased, and although I've been with the company for a year and received a promotion recommendation, the company now refuses to pay the retention bonus as I fall one rating bracket lower than eligibility. I would appreciate any insights or advice on how to address this issue and explore potential solutions. Thank you for your valuable input!

Components like Retention Bonus, Performance Bonus/ allowance etc are purely management prerogative and whatever conditions are put as entitlement will be binding on the employee. If the conditions are clearly mentioned in the contract of employment/ appointment order, any violation can be put as a grievance or if not redressed properly, it can be resolved by any litigation in civil court as breach of contract. Normally, the contract of employment will be silent about the conditions of entitlement but will only say that this much of amount will be paid depending upon thee performance or serving for a required period etc. It may not go in minute about how is target fixed and how the rating is made etc. In the absence of these, the employer can make it flexible depending upon the growth of the organisation. As such, you do not have a right to demand it but you can ask for the details or suggest that the syem shall be made more transparent.

Seek explanation for bonus denial, propose reconsideration based on promotion and performance.

Hi,

Any component which form part of CTC you have all the right to ask. But any component which is out of CTC ( paid apart from salary) will be at the discretion of the employer. But it should be as per mutually agreed terms and conditions.

This appears to be a group incentive calculated on the basis of the department achieving the set target level. So, irrespective of your performance and the credits secured, you have been deprived because of the overall performance of the department. Such situations are aplenty when you have a group incentive plan. This type of situation has been encountered where such an incentive exists and it would be counterproductive as you see many people who are not so productive but the department has met the target, you see them walk away with a handsome amount in their pocket. When we worked out an incentive plan, we had three components based on individual efficiency, group performance, and overall growth of the unit. Though there was individual variation in the payout, but there was something for everyone. That way it became a motivator for everyone

Sad to know that
We should however understand the policy well and comply

Find solace in the fact that when you got incentive, there were others who had equally good record or even better performance, but didn't get the incentive.