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Veera   05 March 2022

Interesting case unsettled discretionary bonus - special performance bonus


I have been awarded a Special Performer bonus of Rs 1,00,000 for the exceptional work done in the 2020-2021 bonus cycle and it is stated in the Annual increment letter that this Rs. 1,00,000 is awarded as an appreciation bonus but will be disbursed Rs 50,000 in 2021 and Rs. 50,000 in 2022.  Now in Dec 2021, I have resigned from the job and expect this amount of Rs 1,00,000 to reflect in my FnF but it was initially not mentioned. After observing that, I highlighted to the employer to consider this as part of the FnF. Then they included only Rs. 50,000 and not Rs.1,00,000. I am still arguing with the employer that I should get Rs 1,00,000 since the amount is already awarded and promised but decided to be disbursed in two installments but there is no condition for this discretionary bonus that I should be on the role neither it needs to be calculated/determined based on the running year performance/bonus cycle.

In the appointment letter, it only stated that in an addition to the gross salary, performance-based bonuses or incentives will be eligible. Actual bonus or incentives payments will be determined by the company performance as well as individual performance and will be prorated based on the number of days worked in each bonus cycle under the compensation structure. In order to receive the bonus or payment, you must be employed by the company on the date. But this statement is related to the annual performance bonus and not related to any discretionary bonuses like the one-time bonus in my opinion. Also since it is already promised and the amount which was already determined & communicated but due from the employer end to compelte the disbursal for the past bonus cycle, still I should be eligible for the payment as part of FnF





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