Bonus witheld

JessicaLeLapin

Hi guys, I recently handed in my notice to my current employer. I get paid a quarterly bonus for November, December and January. My employers are now trying to tell me that I don't qualify due to my resignation, which was handed in 3 weeks after the end of the qualifying quarter. Can they do this?

Carrot007

Not much info but. YES. Unless it was guaranteed (which it will not be).

DCFC79

JessicaLeLapin wrote: »

Hi guys, I recently handed in my notice to my current employer. I get paid a quarterly bonus for November, December and January. My employers are now trying to tell me that I don't qualify due to my resignation, which was handed in 3 weeks after the end of the qualifying quarter. Can they do this?

What does your contract/handbook say re bonuses ?

JessicaLeLapin

Nothing about quarterly, just annual.

LilElvis

JessicaLeLapin wrote: »

Nothing about quarterly, just annual.

And what does it say about annual bonuses? Are they still paid if the payment is due during your notice period or after your employment has finished? Have you spoken to HR? Have you asked them where the bonus terms are written?

Dox

Can they? Looks like they have. Unless you have a contractual entitlement, then yes, they are acting lawfully.

Dean000000

Errrrrrr. Yeh

Exodi

In all the different companies I've worked with a bonus element, the contract has always said something along the lines of "any bonus is discretionary and does not form part of your contract".

Call me cynical but the fact you've coincidentally submitted notice just after the qualifying quarter may have annoyed them. Alternatively, you could have waited until you got paid your bonus then handed in your notice (albeit, it's not a good impression to leave and I'd expect a colourful reference).

I got paid a yearly bonus (that was paid at the end of December) at my last position and served notice at the start of December. I didn't 'expect' a bonus (and had mentally written off getting one) but the MD personally gave me a cheque on my last day because of how I went about it (as I could have deliberately delayed putting in my notice for a couple of weeks as I suspect you have).

Or it may be coincidence and I'm overly cynical (very likely!)

getmore4less

Always best to give notice after any discretionary bonus is Paid.

Gavin83

Exodi wrote: »

Call me cynical but the fact you've coincidentally submitted notice just after the qualifying quarter may have annoyed them. Alternatively, you could have waited until you got paid your bonus then handed in your notice (albeit, it's not a good impression to leave and I'd expect a colourful reference).

Then when should you hand in your notice for a quarterly bonus then?

It's generally expected that the number of resignations will increase once bonuses are paid and almost no company will still pay a bonus after resignation. I'd wait to quit until a yearly bonus had been paid, especially if it was a large sum, as I'd expect 99% of the workforce to do so. And rightly so, I'd have earned it.

Exodi

Gavin83 wrote: »

Then when should you hand in your notice for a quarterly bonus then?

It's generally expected that the number of resignations will increase once bonuses are paid and almost no company will still pay a bonus after resignation. I'd wait to quit until a yearly bonus had been paid, especially if it was a large sum, as I'd expect 99% of the workforce to do so. And rightly so, I'd have earned it.

Whilst I agree with your post personally; from an employers perspective bonuses are just tools to encourage/retain staff and they may, rightly or wrongly, be sour about receiving someones notice just after they've paid them a bonus.

It is important though to distinguish the difference between a bonus and commission; and 'performance based bonuses AKA commission', as you describe above, are fair game to expect as they would have been earned and there is no disagreement there. However, and a real example from my last employment, a percentage of company profits were shared out amongst staff (so an employee who wouldn't necessarily have had any involvement in growth or had their duties changed would receive a bonus) - I should have been more specific in my post but this is the style of bonus I'd expect employers to be sour about.