Can an employer reclaim a bonus?

maurice28

I have worked in my current job at a marketing agency for almost three and a half years. As well as basic salary, bonuses are also paid, sometimes at the end of the half year and full year, or sometimes just at the end of the year. The 'bonus year' runs April to April.

At my last appraisal in May this year, I was told I would be awarded a bonus for the full year ending April 2013. This is due to be paid in June's wage when it is paid next week.

However, I have just been offered a job with another employer, which I am more than likely going to take. I just wondered if I did this, and gave in my month's notice this week, if my employer would be able to then withhold the bonus from me?

I know this will depend on the employer and I will be discussing it with my line manager, but I wondered if there is a general rule on this? I am assumining (and hoping!) that because I was with the company for the period that the bonus covers, it is still technically mine even if I now leave?

Any thoughts much appreciated!

AP007

What does the contact say about bonuses and if you leave?

LittleVoice

maurice28 wrote: »

I have worked in my current job at a marketing agency for almost three and a half years. As well as basic salary, bonuses are also paid, sometimes at the end of the half year and full year, or sometimes just at the end of the year. The 'bonus year' runs April to April.

At my last appraisal in May this year, I was told I would be awarded a bonus for the full year ending April 2013. This is due to be paid in June's wage when it is paid next week.

However, I have just been offered a job with another employer, which I am more than likely going to take. I just wondered if I did this, and gave in my month's notice this week, if my employer would be able to then withhold the bonus from me?

I know this will depend on the employer and I will be discussing it with my line manager, but I wondered if there is a general rule on this? I am assumining (and hoping!) that because I was with the company for the period that the bonus covers, it is still technically mine even if I now leave?

Any thoughts much appreciated!

As you know, it depends on the scheme rules operated by the employer.

Certainly just because you were an employee during the period to which the bonus relates does not guarantee you receive the bonus. All of those which I have known have included that one has to be an employee not only when the bonus is earned but also when it is paid. IIRC there was also a right to withhold payment if the employee had given notice.

maurice28

AP007 wrote: »

What does the contact say about bonuses and if you leave?

Thanks for replying so quickly. The contract says nothing specific. It has a clause that the company can reclaim "monies owed to it" after you leave, and then lists items such as money for training courses, overpayment of wages etc. Bonuses are not on this list.

I have had no written materials around the bonus since the appraisal, so certainly none that say it is repayable. Nothing was said verbally either about it being repayable if I leave.

maurice28

LittleVoice wrote: »

As you know, it depends on the scheme rules operated by the employer.

Certainly just because you were an employee during the period to which the bonus relates does not guarantee you receive the bonus. All of those which I have known have included that one has to be an employee not only when the bonus is earned but also when it is paid. IIRC there was also a right to withhold payment if the employee had given notice.

Thanks, that does make sense. The bonus was actually due to be paid last month but was delayed for some reason, so it would be sod's law if that was the stumbling block!

ValHaller

Wait until the bonus is paid before putting your notice in. Don't discuss with your line manager, 'cos the bonus will be missed from your salary this month too.

somethingcorporate

Better safe than sorry, hang around until it is in your bank account.

maurice28

somethingcorporate wrote: »

Better safe than sorry, hang around until it is in your bank account.

Thanks, might be good advice. But would they then be able to claim it back retrospectively if I handed my notice in, say, the day after it was paid?

DKLS

Last place I worked it went like this:

Qualifying Bonus period Calculated end of December

Bonus number calculated end of feb (e.g. think of any reason how they can take some of your bonus off you)

Then you were supposed to be told how much you would get before the March payroll when it would be paid.

If you resigned between End of Dec and end of March you wouldnt get your bonus, If you resigned 1st of April no problem.

Hence every April there is a raft of resignations.

Check with one of the sales staff they should know the rules inside and out.

TadleyBaggie

I'm in this exact situation, bonus for the year ending March 2013 is payable in the June payroll (23rd). At the beginning of June I was offered a new job, before accepting I enquired what would happen etc, I was told as long as I was employed at the end of the qualifying period (i.e. end of March) I would get the full payment.

maurice28

TadleyBaggie wrote: »

I'm in this exact situation, bonus for the year ending March 2013 is payable in the June payroll (23rd). At the beginning of June I was offered a new job, before accepting I enquired what would happen etc, I was told as long as I was employed at the end of the qualifying period (i.e. end of March) I would get the full payment.

Thanks, hopefully that will happen here too. Reading up online it seems that those employees that take this kind of thing to court tend to get the bonus as long as they were there throughout the qualifying period.

Still might see if I can hold off a week before resigning though!