I am working in a US IT staffing company, and there is a deduction of Rs1000 from my CTC as a retention bonus. The retention bonus, according to my Salary Annexure, states that it will be "Disbursed after completion of the year on a prorated basis." Now, it's been 1.2 years working in this organization, and they are giving me my retention bonus, saying that I have been non-productive for this whole period, and the company has invested a lot in me. As per my knowledge, a retention bonus is not related to productivity and performance.
Can someone help me? How can I get my retention bonus back? I would appreciate guidance and advice on how to go about this.
Thanks!
From India, Noida
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3Can someone help me? How can I get my retention bonus back? I would appreciate guidance and advice on how to go about this.
Thanks!
From India, Noida
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See if your retention bonus was part of wages as per the contract; then you will get it under the Payment of Wages Act. However, there are certain limitations to it. Please refer to the website below for this.
Now, there is a direct violation of the Indian Contract Act. Therefore, you can file a civil case for the amount plus compensation. The key here is to engage a good legal consultant. Also, your performance should not be the sole determinant of your salary. If the bonus was deducted from your agreed CTC with the promise to return it after a period of time, the company is obligated to do so. This approach is considered the most ideal for the IT industry in handling such cases.
From India, Kolkata
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Now, there is a direct violation of the Indian Contract Act. Therefore, you can file a civil case for the amount plus compensation. The key here is to engage a good legal consultant. Also, your performance should not be the sole determinant of your salary. If the bonus was deducted from your agreed CTC with the promise to return it after a period of time, the company is obligated to do so. This approach is considered the most ideal for the IT industry in handling such cases.
From India, Kolkata
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As mentioned by the above forum member, please check your appointment letter to determine if the retention bonus is a part of the salary to be disbursed after one year. It can only be deducted if you leave the company before the stipulated one year, and not on performance grounds. Please consult the HR head to get clarification.
From India, Ahmadabad
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From India, Ahmadabad
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(Fact Checked)-As per the original post, retention bonus should not be linked to productivity. Check your appointment letter for clarity and discuss with HR for resolution. (1 Acknowledge point)
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Hi, yes, it is a part of my CTC, and it is written in my appointment letter that "Rs1000 per month shall be deducted and kept as cautious money will be disbursed on a pro-rata basis after completion of the year subject to clearance of all dues." I completed my period in October 2016 and resigned in December 2016 (as per the instruction by the Managing Director of the company as I was non-productive during this period). They are only giving me my salary and denying to give the retention bonus, which amounts to around Rs 14,000.
I am really in a dilemma stage. NEED ADVICE/HELP!!
From India, Noida
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I am really in a dilemma stage. NEED ADVICE/HELP!!
From India, Noida
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(Fact Check Failed/Partial)-The user reply is incorrect. Retention bonuses can be subject to conditions, including productivity. Seek clarification on the terms from HR or legal counsel.
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If you were non-productive during one year, what steps have been taken by the company? And as per your statement, you have resigned and were not terminated. Retention Bonus has nothing to do with productivity to the best of my knowledge.
From India, Ahmadabad
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From India, Ahmadabad
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(Fact Check Failed/Partial)-The user reply is incorrect. Retention bonus can be linked to performance or productivity as per company policy. Seek clarification on company's terms.
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I resigned as per the direction of the director as they wanted to let me leave on a good note. The company is not working well, and they have put their business (in which I am in) on hold and are focusing on their other business.
From India, Noida
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From India, Noida
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(Fact Check Failed/Partial)-The user's reply is not directly related to the query about the retention bonus and how to retrieve it. It seems to discuss a different aspect of the situation.
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Forget it. Move on. Learn from this that CTC is a concept meant to make a fool of the employee and induce them into thinking they are earning more. From now on, look at the actual in-hand salary and compute your expectations and decisions based on the same. Fighting for that money is expensive (although, as per law, you deserve it). It would also affect the job you are pursuing next. So, write it off and forget it.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is incorrect. Retention bonus should not be tied to productivity or performance. You can pursue your right to the retention bonus as per your contract.
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Retention quest.doc
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(Fact Check Failed/Partial)-The user's reply is partially correct. While the advice on the Payment of Wages Act and seeking legal consultation is relevant, the mention of a direct violation of the Indian Contract Act may not apply to the situation described. It's essential to review the specifics of the contract and labor laws in this case.