Bonus payment refusal

Gadjet87

Hello,

I have been working for a large corporate company for the past 13 years, without any breaks. Due to a new business opportunity, I am now leaving this company to pursue my own business. Over the past 2 weeks, we were informed that due to the financial results, a bonus payment would be awarded to current employees, for the period of 1st Sept 2023 to 31 Aug 2024. One of the terms for eligibility is for any employee to still be with the company on the 28th November when payday occurs. 
Now, I will be taking over my new business on the 11th November but have requested to resign on the 29th November. My only official resignation letter states the 29th. The company is ending my contract on the 10th though, effectively denying my bonus payment, even though I've delivered above the expectations for the past year. Is this legal? I know it's not ethical, but need to find out if there's anything I can do about it.
Thank you 

DullGreyGuy

Bonuses are almost always discretionary and as such they can pick and choose who gets a bonus and who doesn't as long as it isn't based on protected characteristics (gender, race, religion etc). Most places I've worked are more overt about things and state that those working their notice won't be eligible for any bonus or profit share. 

Bonuses/profit shares are not really about rewarding past behaviour but encouraging employees to remain with the company. You've already announced your leaving and so there is no retention factor in it and so why pay it to you?

Undervalued

Gadjet87 said:

Hello,

I have been working for a large corporate company for the past 13 years, without any breaks. Due to a new business opportunity, I am now leaving this company to pursue my own business. Over the past 2 weeks, we were informed that due to the financial results, a bonus payment would be awarded to current employees, for the period of 1st Sept 2023 to 31 Aug 2024. One of the terms for eligibility is for any employee to still be with the company on the 28th November when payday occurs. 
Now, I will be taking over my new business on the 11th November but have requested to resign on the 29th November. My only official resignation letter states the 29th. The company is ending my contract on the 10th though, effectively denying my bonus payment, even though I've delivered above the expectations for the past year. Is this legal? I know it's not ethical, but need to find out if there's anything I can do about it.
Thank you 

Almost certainly yes but without studying the full terms of your contract, other employment documents and policies nobody can say for certain. 
Bonuses are nearly always "discretionary" and if so then any other "terms" are little more than a guide to the firm's normal practice rather than a hard and fast entitlement. The law allows a very wide discretion unless it is so far off as to be "perverse".

It is also very common not to pay a bonus once a resignation has been received.

Does "taking over your new business" mean you will be working outside of your current employment for the last couple of weeks? If so is your employer happy with that?

Exodi

If you are one of the minority that has a defined contractual bonus (e.g. your contract states you are liable to receive a performance bonus and clear performance targets were set and have been met) then you might have a leg to stand on, but the vast majority of bonuses are discretionary (where the employer decides whether they'll pay a bonus and how much).

In the case of a discretionary bonus, you have no rights to it, and you'll find most businesses refuse to pay a bonus to an employee they know is leaving. I wouldn't get caught up on the dates, it's a red herring that your employer is ending your contract earlier than you wanted (which I think is more to do with you taking over your business on the 11th than anything to do with the bonus). Even if you handed your notice in after the bonus was announced (but before it was paid), you'd likely find you wouldn't receive it, even if you weren't leaving for another month or two.

You'll find that if a discretionary bonus is generally paid every year, most people tend to hold off on their notices until the bonus is paid for this exact reason. Unfortunately you're not the first to have learned this the hard way.

LightFlare

Gadjet87 said:

Hello,

I have been working for a large corporate company for the past 13 years, without any breaks. Due to a new business opportunity, I am now leaving this company to pursue my own business. Over the past 2 weeks, we were informed that due to the financial results, a bonus payment would be awarded to current employees, for the period of 1st Sept 2023 to 31 Aug 2024. One of the terms for eligibility is for any employee to still be with the company on the 28th November when payday occurs. 
Now, I will be taking over my new business on the 11th November but have requested to resign on the 29th November. My only official resignation letter states the 29th. The company is ending my contract on the 10th though, effectively denying my bonus payment, even though I've delivered above the expectations for the past year. Is this legal? I know it's not ethical, but need to find out if there's anything I can do about it.
Thank you 

This applies to both sides - you seem to want your cake and to eat it, they disagree

Marcon

Gadjet87 said:

Hello,

I have been working for a large corporate company for the past 13 years, without any breaks. Due to a new business opportunity, I am now leaving this company to pursue my own business. Over the past 2 weeks, we were informed that due to the financial results, a bonus payment would be awarded to current employees, for the period of 1st Sept 2023 to 31 Aug 2024. One of the terms for eligibility is for any employee to still be with the company on the 28th November when payday occurs. 
Now, I will be taking over my new business on the 11th November but have requested to resign on the 29th November. My only official resignation letter states the 29th. The company is ending my contract on the 10th though, effectively denying my bonus payment, even though I've delivered above the expectations for the past year. Is this legal? I know it's not ethical, but need to find out if there's anything I can do about it.
Thank you 

Makes commercial sense for the company - and if you 'take over' your new business on 11 November, you clearly aren't 'still with the company on 28 November', so not sure why you think it is unethical. Perfectly legal unless there is anything in your contract precluding such a move. Is there?

TELLIT01

I'm assuming that the OP put their resignation letter in earlier than was necessary.  If so, the employer could take the option of terminating employment at the end of the required notice period, and it would seem that is what has happened.

Marcon

TELLIT01 said:

I'm assuming that the OP put their resignation letter in earlier than was necessary.  If so, the employer could take the option of terminating employment at the end of the required notice period, and it would seem that is what has happened.

Or just terminate early and make payment in lieu (depending on OP's contractual terms).