Bonus pro-rated cos of maternity leave
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In my companies, the amount of bonus available is based on overall company performance. Say a company has X amount of profit and 18% of it is allocated for bonus. For example, $100,000 is the total amount available for sharing.
Then, the amount needed to give to staff their fixed bonus is deducted from this total bonus amount. If this amount is $40,000, that will leave $60,000 available for performance bonus.
Performance bonus from hereon is referring to the performance of each staff – you do more, you get more and vice versa.
Each staff will have an appraisal.
If your score is 80/100, you may get additional 2 months or 3 months.
If your score is 70/100, you may get additional 1 month.
If your score is less than 60/100, you get none.
And so on.
The $100,000 will be fully distributed and the companies always look at rewarding staff in the fairest way.
So far those women who are on maternity leave and have to get their performance bonus cut are quite receptive of such cut coz they know other times when their colleagues are on maternity leave, they will also enjoy a higher performance bonus when they have to cover other duties. (for those staff who are singles, who don’t really get to enjoy all the perks of having babies, they get to at least enjoy these additional performance bonus). -
I understand, I worked my ass off for 8 months (suffered so much stress during my pregnancy) to soften the impact of my absence for 4 months, the results were great but yet they take into account the time you were physically at the office. Most companies still like to see face-time rather than take a results-oriented approach.
Unhappiness aside, if HR dictates it, you either take it or leave it. If you like your job very much, would advise you to let it go and think of the 4 months paid leave and whatever bonus you had gotten.
If MOM doesn’t stipulate this ruling, we cannot fight it. I have friends who were retrenched right after they gave birth.
Anyway, now I am a SAHM and I am glad I had my baby with paid maternity leave! -
For my 1st 2 kids, I had them in the same company and maternity leave back then was 2 months.
I got pregnant upon joining the company. Fortunately, my boss was understanding. It was unexpected since I couldn’t conceive in my previous job. But after coming back from maternity leave, I am pregnant again (my 2 older kids are 11 months apart). I also had complications so I was on hospitalisation leave for 2 months prior to delivery so I was away for 4 months. But I was working from home during the 2 months prior to delivery so as to reduce burden on my colleague. I don’t recall my bonus was pro-rated as a result of that. In fact, I recalled getting good bonuses as the group I work for exceeded our targets.
For my 3rd child, again another Q4 baby and another complication case (so I was out for 4 months). I got the full bonus.
IMHO, it’s not right for the company to say that the employee is getting pro-rated bonus because one is out for maternity, that sounds discriminating. However, the company can say that bonus is based on performance and since the performance is average (as compared to others based on bell curve logic), the person who is out will logically get lesser given that their contribution is lesser. -
All bonuses from my (then companies) were based on company’s performance. Because i was also entitled to profit-sharing loots, being preggie or going on maternity leaves does not have impact on what i get.
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MMM:
Thanks for sharing. and you summed up what i wanted to say. There is no such written policy in my company, what more when the manager tries to point it down to one. I've spoken to a few other colleagues and nobody got penalised for taking maternity leave.
IMHO, it's not right for the company to say that the employee is getting pro-rated bonus because one is out for maternity, that sounds discriminating. However, the company can say that bonus is based on performance and since the performance is average (as compared to others based on bell curve logic), the person who is out will logically get lesser given that their contribution is lesser.
As i've said, given the bad environment we are operating in today, i was expecting a cut in bonus so i was ready to accept the usual reasoning of 'bonus was slashed this year becoz of company performance bla bla' and not 'because you took 4 months of maternity leave'.
I'm still with the company. Anyway I've had a chat with HR and was advised that that line of reasoning is wrong and discriminatory in nature. So I have 2 options - take it out formally (go thru some process/hearing) or informally (talk again) -
It’s really up to the supervisor really. The 13th month bonus is definitely not affected but when it comes to performance bonuses affected by rankings, the supervisor can force the one who took maternity leave to rank herself lower due to the 4-month absence or what he/she deems "average" performance. Call that penalty or discrimination but MOM doesn’t seem to protect this area coz rankings are very subjective. MOM is more worried about protecting the rice bowls of pregnant women and rightfully so.
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You mean to say you were given a low grading because of your maternity leave and then they further reduced the bonus by another 1/3 due to your absence from the office…like double penalty?
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You asking me or Seunggi? The performance bonus is a Granted amount x the ranking. So after being forced to lower the ranking to reflect the time at the office (eg. 7 out of the full 10 marks), the granted amount is lowered. I don't consider it a double penalty lah.
When I asked why I had to lower my own ranking, boss said they had to pay the temp to do my work for 4 months plus and I wasn't around for 4 months. He also couldn't say I did a bad job coz my results were really good. So as Seunggi mentioned, the boss shouldn't tell us these types of reasons even if they meant it as such. Insensitive lor... plus new mothers are always hypersensitive
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Busymom:
Say she did 100% work in the 8 mths she was in the office.
If one takes no-pay leave for a whole year, there should be no performance bonus for this staff.
On the other hand, if the staff took 4 months off, it does not mean that she did less work in the 8 months when she was in the office as compared to another staff who worked 12 months.
And 100% × 8/12 = 67% of the output of the other staff who was in the office for 12 mths.
Even if the other staff gives only 90%, the output is still more than the one who disappeared for 4 mths.
Do not forget that BOTH staff are fully paid for the whole year.
So, what is consider \"fair\"? equal bonus for same pay different output is fair to the other staff?
And.. there's something wrong with the logic with regards to no pay leave. Someone who is not around for 4mth months and not paid should get less bonus than someone who is not around for 4mth but still paid? How does this makes sense to the pay master..? -
cherrygal:
Oops! I was asking SenunggiYou asking me or Seunggi? The performance bonus is a Granted amount x the ranking. So after being forced to lower the ranking to reflect the time at the office (eg. 7 out of the full 10 marks), the granted amount is lowered. I don't consider it a double penalty lah.
When I asked why I had to lower my own ranking, boss said they had to pay the temp to do my work for 4 months plus and I wasn't around for 4 months. He also couldn't say I did a bad job coz my results were really good. So as Seunggi mentioned, the boss shouldn't tell us these types of reasons even if they meant it as such. Insensitive lor... plus new mothers are always hypersensitive
Anyway, to say that they have to pay the temp during that period may be insensitive. But if the dept or coy have to work within a budget, that money gotta come from somewhere so all I could say is that the supervisor could be abit more tactful.
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