Conditional wages are wages paid to employee with condition(s) attached. Depending on the terms of employment or mutual agreement, such wages are repayable to employer when the employee fails to fulfil the condition(s).
Below are some examples of conditional wages:
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Conditional Wages
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Condition
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Reason(s) for Failure to Fulfil the Condition
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Sign-on/Retention bonus
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Fulfilment of minimum service period
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(a) Resignation
(b) Termination
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Conditional performance bonus
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Paid annual leave
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Resignation/termination resulting in a reduction of annual leave entitlement which has to be converted to no pay leave
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Commission
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Meeting of performance/sales target(s)
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Did not meet the agreed target(s)
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Conditional salary increments
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Advance salary paid on sales of goods/services
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Return of goods/services
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Goods or services were returned, e.g. due to client’s cancellation of insurance policy during free-look period etc.
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Paid study leave
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Completion of course
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Failure to complete course
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Conditional salary increments
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