What are the consequences of resigning on the date when the annual bonus is paid out? Hypothetically, is there a possibility of not receiving the bonus, or being required to return it, especially if the company policy allows for discretion? If someone is technically still “employed” on the payout date, what happens if they choose to resign just after the bonus is deposited into their bank account?
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What are the implications of resigning on date of annual bonus payout?
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Resigning on the date of the annual bonus payout can have various implications, particularly depending on the terms of your employment contract and the company’s bonus policy. Here are some key points to consider:
Eligibility for Bonus: Many companies have policies stating that you must be an active employee on the payout date to receive your bonus. If you resign before or on that date, the company may deem you ineligible for the bonus, especially if the policy is discretionary.
Discretionary Bonus Policies: If the bonus is discretionary, the company has more leeway in determining eligibility. Even if the bonus is wired to your account, the company might reserve the right to reclaim it if you resign shortly thereafter, particularly if it goes against the spirit of their policies.
Company Policy: It’s vital to review the company’s bonus policy and any relevant employee agreements. Some policies might stipulate that employees who resign within a certain period before or after the bonus payout date may have to forfeit their bonus or pay it back.
Legal Considerations: Depending on your jurisdiction, there may be legal protections regarding earned wages, including bonuses. Resigning and receiving a bonus on the same day could potentially lead to a dispute if the company views it as an attempt to game the system.
Best Practices: If you’re considering resigning around the time of bonus distribution, it might be prudent to discuss your situation with HR or a legal advisor to clarify any concerns about eligibility and repayment obligations.
In conclusion, while it is possible to receive the bonus if you resign on the payout date, there are risks and variables to consider, especially regarding company policy and the potential for recoupment of funds.