Which factor determines whether an earned bonus is paid when employment ends?

Which factor determines whether an earned bonus is paid when employment ends?

• A. Company tenure.
• B. Manager's discretion.
• C. Policy terms.
• D. Nothing.

Answer: (C)

Policy terms govern whether an earned bonus is paid when employment ends. Bonus plans lay out the rules for eligibility, when payouts occur, and what happens at separation (voluntary leave, termination, etc.). They may specify pro-rating, full payoff, forfeiture, or other conditions based on the written terms. Because these terms set the actual criteria and procedures, they determine the payout, not just how long you worked or a manager’s personal decision.

Policy terms govern whether an earned bonus is paid when employment ends. Bonus plans lay out the rules for eligibility, when payouts occur, and what happens at separation (voluntary leave, termination, etc.). They may specify pro-rating, full payoff, forfeiture, or other conditions based on the written terms. Because these terms set the actual criteria and procedures, they determine the payout, not just how long you worked or a manager’s personal decision.