Company Refused to Pay Bonus!

angryshawn

Dear MSE Members,

I would be appreciated for some advice. I worked for this company for 2 years. They issued the bonus letter 13/Jul and I handed in my notice 15/Jul. Then I was told by HR I wouldn't get my bonus which is worth 16% of my salary, because in their remuneration policy it said the bonus was discretionary, designed for rewarding and retention purposes and wouldn't be paid for people gave notice before the money was paid out! The bonus pay day is 27/Jul which was only two weeks away! :mad:

My argument is:
1. My manager did not make it clear the bonus was subject to T&C. He merely pointed the number to me and said this is your bonus and thank you for your hard work. (The remuneration policy is enclosed in the same envelope but I didn't read through).
2. The remuneration policy has been modified very recently (in July) to include the 'not paid for leaving staff' clause, I have a copy which I downloaded in June for proof. (And that's when I started looking for jobs and part of the reason not reading the policy again in July).
3. The change of the policy is not notified to employees. On the contrary the company actively pushes any change of business related policy to every employee and even requires tests for them.
4. In my bonus letter it states 'in line with the company's Bonus Policy...' while in the remuneration policy it is headed 'Discretionary Bonus Policy', which is a mismatch.

Feeling angry and disappointed by the company's dishonesty. I talked to HR and they offered me 25% of bonus 'as a good gesture'. I am still feeling very unhappy about the outcome and willing to seek any help including legal actions if necessary.

Before I proceed further I would like to hear any advice you can give? Shall I take the 25% bonus? Shall I find a solicitor? Do I have a case here? Or what else could I do?

Your help is much appreciated. Thanks.

getmore4less

It common for bonus policies to only pay out if employed at date of payment and not on notice to terminate.
Some still pay to "good" leavers eg. redundancy.

If the bonus came with a ploicy document that covers this then I think you stuffed it.

Try for 50% settle on 30%

angryshawn

Thanks getmore4less.

InsideInsurance

What does your contract of employment state about the bonus? Most do say it is discretionary and most companies see a big spike in resignations the day after bonuses are paid because of it.

angryshawn

Employment contract says the bonus is discretionary. However I feel disgusted because HR only changed the T&C very recently in July with regard to not paying bonus to those who hands in the resignation and did not make employees aware of this change. On the other hand the company has been very pushy for those trading related policy changes - there are regular tests for them.

Also my manager failed to mention to me the change of T&C as well.

I've worked very very hard last year to delivery my projects and am feeling utterly disappointed now.

Savvy_Sue

How did the company not make you aware of the change? They included details of the policy with your notification, did they not? You didn't read it, you're stuffed!

getmore4less

Discretionary means they can make any rules for any bonus, you should check the rules for each bonus especialy if you plan to leave.

The fact they included the T&C's with the bonus letter should have been a warning sign.

mildred1978

Hopefully that will teach you to read the small print in future. You tried to play them, then through your own stupidity got burned. More fool you.

Lovelyjoolz

I'd like to give an employers perspective here, if I may.

You are essentially saying that you are angry because your employer won't give you a bonus even though you've told them to stuff their job?

I understand that the bonus relates to past performance, and that you see it as a reward for the hard work you have put in during the last year, but I do think that is a little short sighted.

You said that the company used the bonus scheme as a reward and retention scheme. Meaning that they see the bonus as a way of saying "thanks for your hard work last year, and thank you for staying with us for the coming year". On that basis alone I can see how they are justified in refusing to pay it to you.

From their point of view, you handing in your notice has just landed them with a pretty big recruitment bill. Don't underestimate how much it can cost to advertise, interview and recruit a new member of staff. Expecting them to pay you 16% of your salary on top of that too? A little unreasonable.

Mulder00

I must agree with Lovelyjoolz, I think that you are being unreasonable here. I'd take the 25% and run. Usually the point of a bonus would be to motivate employees who worked hard during the past year to work harder in the coming year. It is more than a thank you, because a thank you for doing your job is your salary.

I have however done the same thing in the past, but I waited until the day that I knew that payments were made (specifically arranged it like this with my new employer) - 6 years on, I still feel guilty for leaving like that - if I could do it again, I would have rather given up my bonus and not tried to "play" them (although I really needed the money at the time).

Sambucus_Nigra

Never hand your notice in til the bonus is in the bank - your bank!

Rule No 1 of working with bonuses.