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Original poster

Retention Payment

36 replies

Mummyto4WM · 20/07/2024 16:43

Hi ladies, wondered if anyone knew anything about employment rights.

So I've been in my current job for 2 years (on the 5th August). I've just been offered a new job. On my 2 year anniversary I'm entitled to a retention bonus of £2k. If I hand my notice in now, can they refused to pay me it?

My notice period of 3 months so I'll be well past the 2 years by the time I leave. I've searched all the HR files and there's no small print, no requirement to pay it back if you leave, no nothing besides its paid on your 2 year anniversary

TIA

OP posts:
Mysa74 · 05/08/2024 21:31

It's sounds as if you've been lucky OP Grin enjoy every penny whether you stay and help them out or not.

leamington66 · 05/08/2024 21:37

Mummyto4WM · 05/08/2024 21:28

Never heard this, so had a quick Google? Payment in lieu of notice (PILON) is a clause in an employment contract that allows an employer to pay an employee instead of having them work their notice period. This means the employee can stop working immediately, and the contract ends right away. How does this relate? They've asked whether I would consider extending my notice period from 3 months to December, until 2 women return from maternity from another department.

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You asked what the rules are that is the rule. They can enact PILON at any point in your notice period.
I hope they don’t

Original poster
Mummyto4WM · 05/08/2024 21:39

leamington66 · 05/08/2024 21:37

You asked what the rules are that is the rule. They can enact PILON at any point in your notice period.
I hope they don’t

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I don't mind! I'd love to go sooner and leaving sooner and being paid is very attractive! The bonus is pennies in comparison to my wage over a 3 month period

But I wouldnt want to leave my team without management for a lengthy period of time, it's important for them to have stability.

OP posts:
leamington66 · 05/08/2024 21:41

Mummyto4WM · 05/08/2024 21:39

I don't mind! I'd love to go sooner and leaving sooner and being paid is very attractive! The bonus is pennies in comparison to my wage over a 3 month period

But I wouldnt want to leave my team without management for a lengthy period of time, it's important for them to have stability.

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I get you. Lots of people are unaware of pilon. Employers use it more than people realise, especially to avoid bonuses etc.
sadly the employee has no say.

Original poster
Mummyto4WM · 05/08/2024 21:43

leamington66 · 05/08/2024 21:41

I get you. Lots of people are unaware of pilon. Employers use it more than people realise, especially to avoid bonuses etc.
sadly the employee has no say.

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Is sounds more of a win win for the employee rather then the employer? (I guess it's dependent on the size of the bonus) but it would be of more benefit to me, in my situation than the employer. I'd love to be around from my little one starting school in September, planning a wedding and being paid to be a lady of leisure

OP posts:
leamington66 · 05/08/2024 21:55

Mummyto4WM · 05/08/2024 21:43

Is sounds more of a win win for the employee rather then the employer? (I guess it's dependent on the size of the bonus) but it would be of more benefit to me, in my situation than the employer. I'd love to be around from my little one starting school in September, planning a wedding and being paid to be a lady of leisure

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Agreed.
it is an employer decision only sadly.
earned bonuses need to be paid even if they pay in lieu of notice. Retentions do not.

prh47bridge · 06/08/2024 08:13

leamington66 · 05/08/2024 21:55

Agreed.
it is an employer decision only sadly.
earned bonuses need to be paid even if they pay in lieu of notice. Retentions do not.

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This is not correct.

A retention bonus is subject to the same rules as any other bonus. The employer can only withhold it if the scheme's rules state that the employee must still be employed and not serving out their notice to receive the payment, and they have taken reasonable steps to ensure that the employee is aware of this.

leamington66 · 06/08/2024 20:21

prh47bridge · 06/08/2024 08:13

This is not correct.

A retention bonus is subject to the same rules as any other bonus. The employer can only withhold it if the scheme's rules state that the employee must still be employed and not serving out their notice to receive the payment, and they have taken reasonable steps to ensure that the employee is aware of this.

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by definition you need to be employed when the retention period ends and the employer can invoke PILON before that date unless the agreement says otherwise

Original poster
Mummyto4WM · 06/08/2024 21:54

leamington66 · 06/08/2024 20:21

by definition you need to be employed when the retention period ends and the employer can invoke PILON before that date unless the agreement says otherwise

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Well... my retention period ended yesterday... so no stress ay. And my employer clearly stated in an email there is no policy.... yet.

OP posts:
Hoppinggreen · 06/08/2024 22:01

I resigned from a job after Mat leave. I was due a bonus but I wouldn't get it as I would be in my notice period.
I did manage to get it but it took some negotiation

dillwithit · 07/08/2024 07:03

How can you have a 2 year retention bonus if they have only been in place for a year?

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