Can a person be liable to receive a bonus or incentives while serving their notice period? In our company, the marketing team receives a commission on sales. Will they be eligible to receive this commission even during their notice period?

Thank you!

From India, Mumbai
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Dear Rashmi,

As per company policy, logically, performance bonuses and incentives are based on individual performance, regardless of whether you are on a notice period or not. If your performance meets the criteria outlined in the policy, the company should pay out accordingly.

Regards,
Tushar Swar

From India, Mumbai
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Hi Tushar,
Thanks a lot for your answer, but the situation here is that it is not mentioned in the agreement whether the benefit will be provided or not. Could you please provide me with your email ID so that I can brief out the situation.

From India, Mumbai
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Dear Rashmi,

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, he 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.

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.

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.

Suman Singh

Founder Director
Sumantrana Advisory Services - Your HR Help Desk.

From India, Pune
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