![]() ![]() If you are planning to leave your job and counting on getting that bonus before you do, make sure you do your research before saying anything.įirst, know what type of bonus you have. Most people have a “discretionary” bonus plan. This means what it sounds like - it is at management’s discretion to pay you. Or not. Even if there are formulas, guidelines or targets for how the bonus is calculated, the company can choose not to pay it, for any reason. Most discretionary plans, in addition to saying that management can use whatever criteria they want, will specifically say that the employee a) needs to be employed on the date that bonuses are paid (not earned), and b) that if the employee gives notice of resignation, he/she is not eligible to receive any discretionary bonuses even if he is employed on the date that they are paid for others. I can’t tell you how many times I’ve had someone come to me in devastation or anger when they realize, after giving notice of their resignation, that they are no longer eligible to receive the performance bonus that they waited around for. I’ve had people tell me they believed that because they worked through December 31 and the bonus was a reward for last year’s work, the company legally has to pay them. This is usually not true. I’ve also had people tell me that they planned their last day to be after the payment date for bonuses so that they can collect the payment before they go. They believe that if they are employed by the company on the date that bonuses are paid, then the company legally has to pay them. This is also usually not true. It’s the most wonderful time of the year. March is the month when many companies pay employees their annual performance bonuses. The beginning of the year is also the most common time for people to change jobs. If you are in that job changers category, be careful. Make sure you understand your company’s policies around bonus payments before saying anything about your intention to leave.
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