Should you time your resignation to avoid losing out on bonus?

In this series, manpower reporter Tay Hong Yi offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to The Straits Times' HeadStart newsletter.

Q Is it possible to time my resignation to ensure I don't lose out on bonuses?

A There are different types of bonuses and different norms across different employers, which yield different outcomes upon resignation, says recruitment veteran Linda Teo.

Under Singapore's Employment Act, variable wage components such as the annual wage supplement (AWS), as well as both annual bonuses and performance-based bonuses are not compulsory, notes Ms Teo, country manager at ManpowerGroup Singapore.

Instead, the bonus amount, if any, and timing depend on what is stated in company policy, the employment contract or a collective agreement.

However, employers typically provide annual bonuses and AWS as a one-time payment to reward employees based on their good performance and the company's overall financial performance for the past year.

It is also a retention tool meant to boost morale as well as incentivise future efforts.

Common payout timings for these bonuses are between December and March.

"Meanwhile, performance bonuses can have frequencies ranging anywhere from monthly, quarterly and half-yearly, to annually," says Ms Teo.

She adds that these performance-based bonuses are more closely linked to an employee's individual performance, or the performance of specific teams and departments, than a broader annual bonus.