Financial Year-End Bonus, Am I Eligible?

[anonDataResearch]

Hi guys,

I'm pretty desperate right now, I know this is a stupid question, but I will take my chance and shoot it here anyway to see if I can get any help...

So, I'm working for a Singapore's Gov company.

1. As talked to my HR, the bonus payout will be on 15th this month.

2. I am planing to resign, and the notice period would be 30 days.

3. I asked HR specifically about the eligibility of my bonus, and they say it's on my contract.

4. Stupid of me, I can't seem to recall where the hell did I put my contract. I asked again and they seems to defer the answer and never tell me specifically.

What should I do now, anyone have experience with this?

[BillyB]

Unfortunately, no-one can answer this question for you without visibility of your contract. There might be clawback terms, minimum length of employment for bonus eligibility etc.

I'd suggest asking HR to send you a soft copy - nothing wrong with that sort of request.

[Wd40]

In banking, the day of declaration of bonus is the key. i.e. the day when you get your bonus letter in hand. You can resign the very next day after you get your bonus letter and dont need to wait until it hits your account.

But thats banking.

[BillyB]

In banking, the day of declaration of bonus is the key. i.e. the day when you get your bonus letter in hand. You can resign the very next day after you get your bonus letter and dont need to wait until it hits your account.

But thats banking.

Another highly relevant post

Most banking bonuses are split into a cash and options' component, with the latter deferred for 2 or 3 years to avoid the example you just gave.

[anonDataResearch]

Thank you guys for your answer.

The situation I am in right now:

I would be receiving the bonus on 15/4/2013, however:

1. I need to announce my resignation within this week
2. I still be working for my current company until at least 1/5/2013 due to the 30 days notice policy

[anonDataResearch]

In banking, the day of declaration of bonus is the key. i.e. the day when you get your bonus letter in hand. You can resign the very next day after you get your bonus letter and dont need to wait until it hits your account.

But thats banking.

did you mean resign as in you still have to work for the notice period? What if you resign 1-2 weeks before the bonus is declared, but still be working for a small amount of time after that?

This whole thing sounds like I'm an asshole, but really, I've worked hard and efficiently last year, and I am certain I deserve it.

[the lynx]

Seriously dude, you need to take a close look at your contract. We really can't advise. I only vaguely know the terms of Singapore government research arm but it is moot. Get a copy from your HR.

Don't mind me being harsh but how could you lose your copy in the first place?!

[Wd40]

In banking, the day of declaration of bonus is the key. i.e. the day when you get your bonus letter in hand. You can resign the very next day after you get your bonus letter and dont need to wait until it hits your account.

But thats banking.

Another highly relevant post

Most banking bonuses are split into a cash and options' component, with the latter deferred for 2 or 3 years to avoid the example you just gave.

Thats probably for Directors and above who are paid over $250k atleast? Our friend who is asking the question is a director you think?

I know VPs in my company who have put down their papers a day after their bonus is declared and they got their bonus.

[Wd40]

In banking, the day of declaration of bonus is the key. i.e. the day when you get your bonus letter in hand. You can resign the very next day after you get your bonus letter and dont need to wait until it hits your account.

But thats banking.

did you mean resign as in you still have to work for the notice period? What if you resign 1-2 weeks before the bonus is declared, but still be working for a small amount of time after that?

This whole thing sounds like I'm an asshole, but really, I've worked hard and efficiently last year, and I am certain I deserve it.

Yes, in banking, on the day our bonus is declared, our department head calls us and hands us the paper that details the compensation for previous year and the bonus. Once you have the paper in hand it means your bonus already a "bird in hand". You can put in your papers the very next day and serve the notice period and you will still get the bonus amount in your account.

[BillyB]

In banking, the day of declaration of bonus is the key. i.e. the day when you get your bonus letter in hand. You can resign the very next day after you get your bonus letter and dont need to wait until it hits your account.

But thats banking.

Another highly relevant post

Most banking bonuses are split into a cash and options' component, with the latter deferred for 2 or 3 years to avoid the example you just gave.

Thats probably for Directors and above? Our friend who is asking the question is a director you think?

My point relates to the fact they clearly said they work for the Government and you started banging on about bonuses in banking which is irrelevant. It's like comparing apples and oranges.

And, no, not only Director level and above get deferred bonuses. I know VP's, AVP's who fall under the same scheme.

[Wd40]

Another highly relevant post

Most banking bonuses are split into a cash and options' component, with the latter deferred for 2 or 3 years to avoid the example you just gave.

Thats probably for Directors and above? Our friend who is asking the question is a director you think?

My point relates to the fact they clearly said they work for the Government and you started banging on about bonuses in banking which is irrelevant. It's like comparing apples and oranges.

And, no, not only Director level and above get deferred bonuses. I know VP's, AVP's who fall under the same scheme.

Lol! People earning 100-140k getting bonus in shares? Considering how bad bonuses have been this year, thats a joke

[BillyB]

Thats probably for Directors and above? Our friend who is asking the question is a director you think?

My point relates to the fact they clearly said they work for the Government and you started banging on about bonuses in banking which is irrelevant. It's like comparing apples and oranges.

And, no, not only Director level and above get deferred bonuses. I know VP's, AVP's who fall under the same scheme.

Lol! People earning 100-140k getting bonus in shares? Considering how bad bonuses have been this year, thats a joke

I never said deferred bonus was shares. You can defer a cash payment and embed optionality for the payout. It can also be treated on-balance sheet as a deferred charge payable in x years time - the bank is in a win win situation with this as it boosts capital and earns interest.

And I know plenty of VP's who pull in 200-250k in the front office, so you are making wild generalisations that all AVP's and VP's earn 100-140k. It really depends on which function you work in. Back office and developers are two a penny in Singapore and there are always people who can replace them at a moments notice. Good sales people, structurer and traders are harder to replace, so they tend to be locked-in for longer.

[Wd40]

Typically from what I know about how contracts are written, the employers try to play as safe as possible and as conservative as possible, if something is mentioned about the bonus or it wouldnt even be mentioned in your contract.

Its impossible that they will write something to the effect of "You can resign anytime you want and you will get your bonus"

So if something is written about it most probably the wording will be "The company has the descretion to not pay any bonus at all if the employees decides to leave the company"

So you need to talk to your colleagues, manager, ex employees to find out what they actually do.

From what I know:
1)Most critical thing is you need to be there for the whole bonus period i.e. if financial year is until mar 31st the absolute minimum is you need to be there until that date, its impossible to get bonus prorated.
2)Next level is you need to be in company on the bonus declaration date, some companies may allow you to put down your papers on before that date and yet give you the bonus some may not give you the bonus if you put in your papers before that.
3)The best case is of course to put down your papers after the bonus hits your account.

[sundaymorningstaple]

[Wd40]

My point relates to the fact they clearly said they work for the Government and you started banging on about bonuses in banking which is irrelevant. It's like comparing apples and oranges.

And, no, not only Director level and above get deferred bonuses. I know VP's, AVP's who fall under the same scheme.

Lol! People earning 100-140k getting bonus in shares? Considering how bad bonuses have been this year, thats a joke

I never said deferred bonus was shares. You can defer a cash payment and embed optionality for the payout. It can also be treated on-balance sheet as a deferred charge payable in x years time - the bank is in a win win situation with this as it boosts capital and earns interest.

And I know plenty of VP's who pull in 200-250k in the front office, so you are making wild generalisations that all AVP's and VP's earn 100-140k. It really depends on which function you work in. Back office and developers are two a penny in Singapore and there are always people who can replace them at a moments notice. Good sales people, structurer and traders are harder to replace, so they tend to be locked-in for longer.

Yeah right! Given the way banks are culling traders, these guys have no place to hide atleast technologists can change domain. Do some reading of efinancial careers for reality check