Is this bonus legally binding?

rusters

I received a letter from my employer earlier this year, stating that they were paying us a "Special Bonus" due to our efforts in the last year.
In this letter, we were given the guaranteed total amount to be paid and the dates that each payment would take place. All signed by the Owner/Boss.
Subsequently, no payment has been made, with the company now saying it cannot meet these payments.

Is this legally binding?

[Deleted User]

Possibly, depending on the exact wording and that of your wider contract, but it makes little difference if they don't have the funds.

Undervalued

rusters said:

I received a letter from my employer earlier this year, stating that they were paying us a "Special Bonus" due to our efforts in the last year.
In this letter, we were given the guaranteed total amount to be paid and the dates that each payment would take place. All signed by the Owner/Boss.
Subsequently, no payment has been made, with the company now saying it cannot meet these payments.

Is this legally binding?

In what way was it "guaranteed"?

As zx81 has said, it might possibly be legally binding although it has to be said that the vast majority of bonuses are discretionary and can be withdrawing right up until they are actually paid.

Even if it was legally binding you would need to consider very carefully whether it was in your best overall interest to try and enforce payment against your employer's wishes.

rusters

The letter specifically stated that these were "guaranteed amounts", to be paid on certain dates.

MattMattMattUK

rusters said:

The letter specifically stated that these were "guaranteed amounts", to be paid on certain dates.

That does not really mean anything in isolation, as has been said above it means even less when taken in the context of the company not being able to make the payments. 

TELLIT01

Although the wording would seem to indicate that the payments will be made i.e. guaranteed, what would the OP and other staff plan to do if the company doesn't have the funds to make the payments?

74jax

If the company can not make these payments now, I'm guessing it's a rather small company?

I would consider your future if the cash flow doesn't allow this. Íd start looking for a new job before they don't have the funds to pay salaries. 

custardy

74jax said:

If the company can not make these payments now, I'm guessing it's a rather small company?

I would consider your future if the cash flow doesn't allow this. Íd start looking for a new job before they don't have the funds to pay salaries. 

I dunno.I recall Royal Mail reneging on a phantom share deal with staff ,so not always small companies.