Employer refusing to pay "Bonus"

LawAbiding

Hi,

Wanted to run this by others before I file a court claim.

My wife worked at a local Care Home from 4th October to the 31st March 2022 (her last shift finished at 8am on 1st April 2022 as it was a night shift).

During this period she received a letter from her employer stating a fund issued by the Government for health care staff would be passed to all Employees as a "Bonus".

The only criteria to be eligible to receive the payment is:

"the bonus will only be payable to those Colleagues who have remained in continuous employment with xxxxx since 21 October 2021 through until the end of March 2022"

It adds:

"This payment will only be paid to Colleagues who are still employed with xxxxx at the end of March 2022"

Both extracts from the letter received, no other criteria is set within the Letter.

Her ex-Employer is now stating she is not eligible.

When questioned, they initial reply was:

"You were no longer an employee from the second your last shift ended. You did not meet the criteria."

She refuted this and stated her last employed date would be 31st March 2022 as per the Notice she gave (meeting Contract expectations).

We then remembered she worked the 31st March, night shift finishing at 8am on 1st April, so this then fulfils they incorrect criteria.

But again, they have stated this:

"It has been confirmed that your last working day was 31st March 2022.

 

You have been found not eligible for this payment."

She has responded making it clear she worked till 8am on 1st April 2022 and they must explain how she is not eligible, no response thus far.

We are now considering taking this through a small claims court, the bonus is not alot, but when you paid the minimum wage to work 12 hour night shifts to look at the most vulnerable members of our society, the principle of not paying the bonus is quite shameful.

The real question is, does the Employer have a legal responsbility to pay the bonus as promised in the letter.

Are they able to pull the rug and just say, its up to us, and on this occasion we not paying.

To add, Company does not have an existing bonus policy, and the Employment Contact has no mention to a bonus.

Undervalued

LawAbiding said:

Hi,

Wanted to run this by others before I file a court claim.

My wife worked at a local Care Home from 4th October to the 31st March 2022 (her last shift finished at 8am on 1st April 2022 as it was a night shift).

During this period she received a letter from her employer stating a fund issued by the Government for health care staff would be passed to all Employees as a "Bonus".

The only criteria to be eligible to receive the payment is:

"the bonus will only be payable to those Colleagues who have remained in continuous employment with xxxxx since 21 October 2021 through until the end of March 2022"

It adds:

"This payment will only be paid to Colleagues who are still employed with xxxxx at the end of March 2022"

Both extracts from the letter received, no other criteria is set within the Letter.

Her ex-Employer is now stating she is not eligible.

When questioned, they initial reply was:

"You were no longer an employee from the second your last shift ended. You did not meet the criteria."

She refuted this and stated her last employed date would be 31st March 2022 as per the Notice she gave (meeting Contract expectations).

We then remembered she worked the 31st March, night shift finishing at 8am on 1st April, so this then fulfils they incorrect criteria.

But again, they have stated this:

"It has been confirmed that your last working day was 31st March 2022.

 

You have been found not eligible for this payment."

She has responded making it clear she worked till 8am on 1st April 2022 and they must explain how she is not eligible, no response thus far.

We are now considering taking this through a small claims court, the bonus is not alot, but when you paid the minimum wage to work 12 hour night shifts to look at the most vulnerable members of our society, the principle of not paying the bonus is quite shameful.

The real question is, does the Employer have a legal responsbility to pay the bonus as promised in the letter.

Are they able to pull the rug and just say, its up to us, and on this occasion we not paying.

To add, Company does not have an existing bonus policy, and the Employment Contact has no mention to a bonus.

If there was a hard and fast contractual entitlement to the bonus, subject to certain terms and conditions, and she met those conditions then yes.

However, it is unusual for a bonus not to be in some way "discretionary". Arguably, if it isn't discretionary is it really a bonus at all? So, she needs to carefully read all of her contract along with any letters or notices that may have revised her terms and conditions.

Remember a "contract of employment" is not just simply a sheet of paper with the word contract on it. Other things can form a part including any staff handbook, policies, procedures, letters and even notices on the tea room wall.

".... but when you paid the minimum wage to work 12 hour night shifts to look at the most vulnerable members of our society, the principle of not paying the bonus is quite shameful....." 

Whilst I fully understand the sentiment, that doesn't affect the legal position in any way I'm afraid.

 

Scorpio33

Usually bonuses are "discretionary" anyway. So even if she didn't resign until 1st April, there would be nothing stopping them from with holding any bonus.

Jillanddy

I am afraid that it is unlikely that we can give you the reassurance that you want - understandably you are quoting snatches from documents which support your case. And you may be correct. But we don't know what else the documents say, or what other documents exist, that may counter your points. On this occasion I would suggest that an employment tribunal is the route to go down. ACAS will have the mediate the claim so you will need to go through them. But it is free, and if the employer can provide a defence then ACAS are likely to be able to see it and advise you whether it is worth pursuing to tribunal. Also employers often settle at this stage if they are trying it on. Otherwise you would have to pay for a civil claim, and that might be an expensive way to find out that you are wrong and they are right.

TELLIT01

LawAbiding said:

We are now considering taking this through a small claims court, the bonus is not alot, but when you paid the minimum wage to work 12 hour night shifts to look at the most vulnerable members of our society, the principle of not paying the bonus is quite shameful.

I agree that not paying the bonus is shameful if all the qualifying criteria have been met.  However, if it is a small figure, is it really worth the hassle to go through the courts to recover it.  I understand the principle of not wanting to let them get away with it, but do consider the stress this will cause to your family too.

JJC1956

Scorpio33 said:

Usually bonuses are "discretionary" anyway. So even if she didn't resign until 1st April, there would be nothing stopping them from with holding any bonus.

It’s not as if the Bonus is coming from the Care Home Owners, it was supplied by the Government, it was a Thank-you payment for looking after people during a very difficult period. 

Undervalued

JJC1956 said:

Scorpio33 said:

Usually bonuses are "discretionary" anyway. So even if she didn't resign until 1st April, there would be nothing stopping them from with holding any bonus.

It’s not as if the Bonus is coming from the Care Home Owners, it was supplied by the Government, it was a Thank-you payment for looking after people during a very difficult period. 

Then, by that argument, why would a requirement to remain in employment until a date many months after the "very difficult period" apply?

JJC1956

Undervalued said:

JJC1956 said:

Scorpio33 said:

Usually bonuses are "discretionary" anyway. So even if she didn't resign until 1st April, there would be nothing stopping them from with holding any bonus.

It’s not as if the Bonus is coming from the Care Home Owners, it was supplied by the Government, it was a Thank-you payment for looking after people during a very difficult period. 

Then, by that argument, why would a requirement to remain in employment until a date many months after the "very difficult period" apply?

Sorry I don’t understand your comment.
Her work Start/Finish dates fell within the set criteria, simple really

Undervalued

JJC1956 said:

Undervalued said:

JJC1956 said:

Scorpio33 said:

Usually bonuses are "discretionary" anyway. So even if she didn't resign until 1st April, there would be nothing stopping them from with holding any bonus.

It’s not as if the Bonus is coming from the Care Home Owners, it was supplied by the Government, it was a Thank-you payment for looking after people during a very difficult period. 

Then, by that argument, why would a requirement to remain in employment until a date many months after the "very difficult period" apply?

Sorry I don’t understand your comment.
Her work Start/Finish dates fell within the set criteria, simple really

Clearly!

My point was why was a qualifying date required at all, providing the employee worked during the "very difficult period" and therefore "earnt" the bonus?

Or are you saying that 31st March marked the end of the "very difficult period"?

As has been said earlier, it is incredibly unusual for bonuses not to be discretionary. The law allows very wide discretion, as long as it is not so far off the mark as to be "perverse". Without fully reading everything that could contribute the contract (i.e not just the bit of paper labelled contract) it is hard to say more.

Normal advice to anybody likely to get a bonus is not to resign until after it has been paid for exactly these reasons.

JJC1956

The date was probably made up by a bunch of officials dining on the HP terrace overlooking the Thames, who knows where they plucked these dates from but you are right, if the OP was right why did she leave the job on or around the 31st, she might have a very good reason but it cost her £600 according to figures bandied about on the internet. 

400ixl

Doesn't sound like it applies here but may do, many companies have the terms that the employee must be employed and not serving notice on the date specified. in this case the second part applied.

As people have said most bonus schemes are discretionary so fighting them on it can be difficult.