Bonus whilst under notice

cool_dude_2000

Ive been advised by HR that there is no policy in relation to the bonus as it is not contractual. However, I do have a letter from manager which invited me to the scheme and clearly states that it is determined by business measures and personal performance.

It does further down also state that bonuses are paid entirely discretionary and maybe forfeit or reduced if performance deemed unsatisfactory.

Having researched online, I understand that businesses dont have unfettered discretion and have to demonstrate that in withholding any payment they have acted in good faith and reasonable grounds. In this regard i believe there is a potential challenge that can be mounted. Does anyone agree?

27yearoldmale

I think as others have stated, it would have been wise for you to have waited until December and resigned once your bonus had cleared. You most probably could have then negotiated your notice period.

Discretionary bonus's are called discretionary for a reason.

The days of contractual guaranteed bonus's are long gone, well since the recession.

InsideInsurance

cool_dude_2000 wrote: »

Ive been advised by HR that there is no policy in relation to the bonus as it is not contractual. However, I do have a letter from manager which invited me to the scheme and clearly states that it is determined by business measures and personal performance.

It does further down also state that bonuses are paid entirely discretionary and maybe forfeit or reduced if performance deemed unsatisfactory.

Having researched online, I understand that businesses dont have unfettered discretion and have to demonstrate that in withholding any payment they have acted in good faith and reasonable grounds. In this regard i believe there is a potential challenge that can be mounted. Does anyone agree?

No, dont agree. As you say its not in your contract and the documents you have about it say its discretionary.

Withholding payment is of salary etc and not discretionary bonuses.

As others have said, it is standard practice that bonuses are not paid to those who are leaving. They are designed not to be a thank you for last years service but an incentive for next year but anyone under notice isnt going to be there next year so why pay them?

When I did a piece of work on staff retention then 3 months before bonus date the leaving rates dropped notably (manager and specialist staff were on 3 months notice) and the month before it the leaving rate was almost 0 (call centre staff were a one month notice). The month after bonus was paid there was a massive spike of leavers that pettered out over 3 months (evidently managers -v- call centre and negotiations over if all notice has to be served or not etc)