Bonus withheld - is this legal

And2804

As part of a  previous collective consultation process I had accepted a 20% pay cut from April 2020 until 31 Dec 2020. On November 23 a further collective consultation process was put in place to extend these terms until 31 Mar 2021. We had until December 7 to notify the company if we were not willing to accept the proposals, which I did i.e. I have chosen not to accept with the knowledge that individual consultation would follow and ultimately would lead to redundancy. The individual consultation process has not yet started as they have offered me a retention bonus payable at end of March to stay which I was considering. Today I learnt that because I have not accepted the proposals the 3% bonus being paid in the December payroll in relation to this performance year is being withheld. Is this legal - If I chose not to accept the 20% cut and retention bonus option they can choose not pay the performance bonus related to this year? It doesn't feel right and to me and are surely two seperate issues?

MalMonroe

There's some government information here : https://www.gov.uk/understanding-your-pay/performancerelated-pay

And they also recommend contacting Acas, who will be able to give you up to date and relevant information. There's a link within the link I've provided. Just a quick phone call and you can get all the advice you need. 

Good luck!

Thrugelmir

Is the bonus payment in anyway discretionary and subject to other performance criteria?  

And2804

Normally the 10% management bonus is 50/50  split between business and personal performance with the personal element  being scored and multiplied out of 100. We were informed that no bonus would be paid with respect of this years performance. However as a result of the loss of the personal element not being part of any collective consultation to date they have decided as a goodwill gesture to pay 30% I.e 3% to all eligible. We have all worked our socks off over the past few months with no furlough or time off. 

I was told individually and as part of the whole group that this was to be paid in our December pay. Then just before I was due to receive the payroll file to approve I was called by my boss and asked if I hade made my decision whether to stay i.e accept the proposed pay cut extension & retention bonus option. I said I was still considering my options and as a result was then informed I would not be receiving this years bonus. However if I did stay it would be paid. Doesn’t seem right and quite cruel to do this to someone before Christmas. 

Marcon

And2804 said:

Normally the 10% management bonus is 50/50  split between business and personal performance with the personal element  being scored and multiplied out of 100. We were informed that no bonus would be paid with respect of this years performance. However as a result of the loss of the personal element not being part of any collective consultation to date they have decided as a goodwill gesture to pay 30% I.e 3% to all eligible. We have all worked our socks off over the past few months with no furlough or time off. 

I was told individually and as part of the whole group that this was to be paid in our December pay. Then just before I was due to receive the payroll file to approve I was called by my boss and asked if I hade made my decision whether to stay i.e accept the proposed pay cut extension & retention bonus option. I said I was still considering my options and as a result was then informed I would not be receiving this years bonus. However if I did stay it would be paid. Doesn’t seem right and quite cruel to do this to someone before Christmas. 

Why has it taken you so long to not reach a decision - what do you think will change in the short term? If the roles were reversed, would you really pay a bonus to someone who (in the employer's eyes) was dithering around at a time of national crisis and adding to the stresses of trying to keep the business afloat? Maybe your boss feels that isn't quite right.

Gavin83

Marcon said:

And2804 said:

Normally the 10% management bonus is 50/50  split between business and personal performance with the personal element  being scored and multiplied out of 100. We were informed that no bonus would be paid with respect of this years performance. However as a result of the loss of the personal element not being part of any collective consultation to date they have decided as a goodwill gesture to pay 30% I.e 3% to all eligible. We have all worked our socks off over the past few months with no furlough or time off. 

I was told individually and as part of the whole group that this was to be paid in our December pay. Then just before I was due to receive the payroll file to approve I was called by my boss and asked if I hade made my decision whether to stay i.e accept the proposed pay cut extension & retention bonus option. I said I was still considering my options and as a result was then informed I would not be receiving this years bonus. However if I did stay it would be paid. Doesn’t seem right and quite cruel to do this to someone before Christmas. 

Why has it taken you so long to not reach a decision - what do you think will change in the short term?

I think that’s clear. Ultimately the OP wants both the bonus and to refuse the pay cut and take redundancy. However I don’t think the employer will back down so it appears to be one or the other.

OP, in your position I’d probably take the pay cut unless I already had a job lined up given how difficult it’ll be to find a job at the moment. Ultimately it’s your choice though.

steampowered

Bonuses are almost always discretionary.

It is perfectly legal for a company to choose which employees it wants to give bonuses, and which it doesn't.

You say that you were "offered" a retention bonus? If you had accepted that offer, it might be that the bonus would form part of your employment contract. But, if you did not accept or decline the retention bonus, it can be withdrawn. 

74jax

If you want to hold out for redundancy then is their a reason you haven't said yet? I would probably take the redundancy (if the package was good) but my circumstances allow me to do that, if you can manage without a job and its what you want to do, just let them know. 
My old company had a bonus scheme, if you had handed your notice in you did not get it, if performance wasn't up to scratch you didn't get it, but if you were being considered for redundancy you did still receive it.