Offer Letter Bonus

Jimbo_Jetset

Hi All,


I have been in my job for almost 8 years now.
However 18months ago I resigned to join another company; I was happily working my 3 months notice period.


In the last 3 weeks of work, my manager took my aside and turned me around. My package was improved and so I decided to stay with the business.


My package was amended and I received a letter confirming my new position in the business, the effective date of this employment and the "terms of this employment are":

• Basic Salary XXXX
• Bonus for financial year 10% (March to April)
• Car Allowance XXXX
• Notice period XX

A revised role/job specification came later, along with a new Statement of Mains T&Cs.


Signed by the HR Director of the group.


Now - the crux of the matter is I have not received the bonus, when I asked the same HR Director about this two weeks ago I was told to read my contract - there is a clause in there about it being discretionary. Well I did. There is no mention of even the work BONUS in the T&C.


I believe this is serious and I have ground to ask for 10% of my annual salary, based on what this would be on April 1st this year.


Serious stuff, as this will signal to the business I am not best pleased, however I negotiated this and have email evidence to back this up.


Can I take this further? What are my rights...... is an offer letter a form of T&Cs? Are they in breach of contract?


I feel I have done nothing wrong - and you know what I feel weird making a big deal of this. But I asked for it, and they said yes! There was no notification of the "scheme" and what it entailed.


Help!


JJ

sangie595

To be honest, based on this, I think it's unclear. Yes there is a reference to a bonus in the letter. But equally, it does not say it is guarenteed. Whereas the terms and conditions appear to be clear that it is discretionary. Did you not read the contractual terms before agreeing them?

I wouldn't want to call it if you took this to court. Which, of course, is the only way of settling it if the employer is refusing the payment. It could go either way. But I'm leaning towards the fact that the contract says it is discretionary.

Jimbo_Jetset

Thanks for the quick response.
The contract does not mention anything about bonuses. HR stated to "check you contract". I have, and found nothing. Not even the word bonus.


There is no mention of this being guaranteed, discretionary or % based on certain performance criteria (personal or business based).


I have nothing but the offer letter stating the "terms of this Employment are: 1) 2) 3) etc...... of which the 10% bonus is stated.


Surely this is important and relevant?


Cheers!


JJ

Takeaway_Addict

Jimbo_Jetset wrote: »

Thanks for the quick response.
The contract does not mention anything about bonuses. HR stated to "check you contract". I have, and found nothing. Not even the word bonus.


There is no mention of this being guaranteed, discretionary or % based on certain performance criteria (personal or business based).


I have nothing but the offer letter stating the "terms of this Employment are: 1) 2) 3) etc...... of which the 10% bonus is stated.


Surely this is important and relevant?


Cheers!


JJ

If you signed a new contract after the letter would this not take precident?

Either way, seems a good way to wind an employee up promising one thing and then not delivering....I take it you will be looking for another job again!

Jimbo_Jetset

Thanks.
Why should I be fearful of this?
I feel rude asking, however I asked for it, they offered it and I accepted. If they did not use the correct words (i.e. "discretionary" etc...) then that's tough. I am big and bad enough to know what message this sends.....

sangie595

Sorry - I misread the OP and thought you said the contract said it was discretionary.

In that case, you will have to start with a grievance to attempt to resolve this with your employer. If that does not work, it will have to be court action.

I presume you are now looking for another job? Because you will need to.

Nicki

It doesn't look accidental that the terms and conditions which were issued and signed after the OP had decided to stay in post do not refer to a bonus at all, even though the offer letter did. Otherwise how would the HR director know to respond to OP "read your ts and cs" on being challenged.

I think you've been deliberately stitched up OP and even if you succeed in bringing a grievance, I wouldn't be banking on a long and fulfilling career where you are.

Jimbo_Jetset

Guys,

Thanks for all the advice.
Clearly I have to be careful. I have been there 8 years. So fancy a change, the verbal promises made have not come to pass when I was turned around.
I just want to sort this out before it's too late.

JJ.

Prothet_of_Doom

They STITCHED you up like a Kipper.
This is what I would do:

1) Get a new Job. (Not just any job or the first job, but the right job)
2) Accept new Job.
3) Leave, and if anyone asks refer them to the email dated XX/XX/XX in which it stated you'd get a bonus. Explain No bonus = no loyalty.
4) If they make a play to try to get you to stay, tell them you want 3 x bonus (minus tax and Ni) in your bank account by Friday before you will even discuss terms.
5) Leave with or without bonus.

Sanne

Just a thought but have you checked your company hand book? Sometimes they have info about bonus schemes.

sangie595

Prothet_of_Doom wrote: »

They STITCHED you up like a Kipper.
This is what I would do:

1) Get a new Job. (Not just any job or the first job, but the right job)
2) Accept new Job.
3) Leave, and if anyone asks refer them to the email dated XX/XX/XX in which it stated you'd get a bonus. Explain No bonus = no loyalty.
4) If they make a play to try to get you to stay, tell them you want 3 x bonus (minus tax and Ni) in your bank account by Friday before you will even discuss terms.
5) Leave with or without bonus.

The law does not work on the basis that two wrongs make a right. If the OP leaves without serving notice, they may end up in a much worse situation. And if they believe anything the employer says after this, no matter what, they are foolish.