Bonus Quandry

-westy-

-westy-

-westy-

Soldato
Joined
7 Nov 2002
Posts
12,629
Location
Snorbans, UK
Morning all,

I'm currently having a bit of an issue with my employers regarding our annual bonus - I was hoping to get your thoughts on it.

I am on a 12 month, fixed term contract. I have been working here since January 2018. The company's financial year runs from August 1st to July 31st each year. So, I have been working here for 7 months of the financial year.

Now, the quandry - I have been told that I am not eligible to receive a bonus this year, as I am a Fixed Term Contractor. However, this contradicts information that I have been given by the Operations Director - it was confirmed by them that I would receive a pro rated bonus for this year.

Contract - The wording of my contract is as follows, "You may be eligible for a Company Profit Bonus Share" - the key work being "may".

Policy - Apparently, it's written in company policy that Fixed Term Contractors are not eligible to receive a bonus. (I haven't seen this particular part of the policy, I'm sure I could get hold of it if need be)

However, a month ago I queried this with our HR department - they confirmed (taking working days to respond, so plenty of time to research and figure it out..) via email that I am eligible for the bonus payment.

Can anyone comment on this? Does the above email from HR trump everything else? What say you, GD?

TIA :)
 
A bonus is at descretion, sounds to me that although it's possible, either your performance doesn't warrant one or your manager's a tight arse.
 
I'd be asking them to show you the part of the policy that says you're not entitled to the bonus. Whatever's in the policy over-rides what someone from HR's said as they could be mistaken. Bit of a bummer that.

My contract says 'you are expected to work one Saturday a month' despite it not being part of my working hours, I queried it and was told to turn up or face disciplinary action. If you take your scheduled Saturday as holiday, they deduct 0.5 days for it even though it's not a contracted day :D

Wording is key!
 
Fire an email to HR, Ops Director and whoever said you wouldn't be and ask for clarification.

Or, just wait and see what happens. Tbh, a lot of companies don't offer bonuses to anyone that's been there under 12 months.
 
Diddums said:
A bonus is at descretion, sounds to me that although it's possible, either your performance doesn't warrant one or your manager's a tight arse.
Click to expand...

My performance certainly does warrant it, as I've received quite a nice pay rise due to it.

wolfie138 said:
why do you think we would know, as opposed to the officials in your company?
Click to expand...

I was asking what other people thought, rather than a definitive answer.

el_dazza said:
I'd be asking them to show you the part of the policy that says you're not entitled to the bonus. Whatever's in the policy over-rides what someone from HR's said as they could be mistaken. Bit of a bummer that.

My contract says 'you are expected to work one Saturday a month' despite it not being part of my working hours, I queried it and was told to turn up or face disciplinary action. If you take your scheduled Saturday as holiday, they deduct 0.5 days for it even though it's not a contracted day :D

Wording is key!
Click to expand...

Yes that's a shame, HR are apparently "investigating" this, I would hope that given I've received a confirmation from them that they honour it. Pigs might fly..
 
AHarvey said:
Fire an email to HR, Ops Director and whoever said you wouldn't be and ask for clarification.

Or, just wait and see what happens. Tbh, a lot of companies don't offer bonuses to anyone that's been there under 12 months.
Click to expand...

That's what I've done last month. My contract does say that I may be entitled to a bonus, however it would be pro-rated for the first year.
 
The contract would overrule any email from HR.
The contract would almost certainly state that bonuses are discretionary, and there are liekly exclusions or employees with less than 12 months tenure.
The contract can be changed at any time and you ave a choice of accepting the new contract or looking for new work. So even if the contract doesn't state what the directors want, they can rectify it.


You can shoot an email and see where you get but I wouldn;t put your hopes up
 
D.P. said:
The contract would overrule any email from HR.
The contract would almost certainly state that bonuses are discretionary, and there are liekly exclusions or employees with less than 12 months tenure.
The contract can be changed at any time and you ave a choice of accepting the new contract or looking for new work. So even if the contract doesn't state what the directors want, they can rectify it.


You can shoot an email and see where you get but I wouldn;t put your hopes up
Click to expand...

Have clarified all this above.

I may be eligible - but like you say, it's discretionary. The vast majority of employees have received a bonus.
If I received a bonus it would be pro-rated for the first year.
Our contract can change with written notice - for example with the pay rise I was given, I received written notice.

It's quite frustrating as I've received conflicting information - and an email from HR confirming an inquiry, only for them to go back on that, (policy or not) would be very frustrating.
 
Contract states may
HR states you are
Ops director said you are
Manager said you aren't


Now the question is, Do you have confirmation from the Ops director that you will receive a pro rated bonus or was this simply in a discussion? However before arguing this point, Do you intend to extend your contract if offered as your manager may opt to not offer it again if you decide to be awkward and show them up.
 
Woogie said:
Contract states may
HR states you are
Ops director said you are
Manager said you aren't


Now the question is, Do you have confirmation from the Ops director that you will receive a pro rated bonus or was this simply in a discussion? However before arguing this point, Do you intend to extend your contract if offered as your manager may opt to not offer it again if you decide to be awkward and show them up.
Click to expand...

I don't have written confirmation, no - this was during a verbal discussion.

You have a good point - I don't want to cut off my nose to spite my face; I'm hoping that they act in good faith, however I'm not expecting them to. Like you say, they may not offer to extend my contract if I kick up a fuss - however it's a substantial payment so I'm not willing to take it lying down. Just need to find a balance.
 
-westy- said:
I don't have written confirmation, no - this was during a verbal discussion.

You have a good point - I don't want to cut off my nose to spite my face; I'm hoping that they act in good faith, however I'm not expecting them to. Like you say, they may not offer to extend my contract if I kick up a fuss - however it's a substantial payment so I'm not willing to take it lying down. Just need to find a balance.
Click to expand...

You might have some luck and they will honor in good faith. I just wouldn't push the boat too hard on this, especially if you like the job and see future opportunities.
 
As others have said whatever is set in stone in the contract/policy is the winner here or else your mate Dave in HR could knock you up a letter saying you're getting a bonus and again bonuses are almost always at the companies discretion anyway so what an Ops Director said a couple of months ago may well no longer be applicable.
 
Last edited:
Bonus schemes are almost always discretionary, and while not unheard of for fixed term contractors, very rare.

When you say most other employees have received a bonus, do you know of any other FTC's in the business that have received a bonus?

Also eligibility to the scheme and getting a bonus are also not the same thing.
 
As most others have said, key wording in contract usually highlights that bonuses are discretionary.

Ergo doesn't really matter what HR say, or your manager etc etc, it'll be whoever is highest up that signs to confirm the bonuses that will decide whether you should get one or not.
 
Get the policy and find out.

If it's written in there that you are eligible then quote the email from HR and all is good. If the policy says that you may be eligible then you're stuffed.

You mention that you've received a nice pay rise... if so then you may be coming across as a bit of a money grabber by demanding something that could be discretionary.
 
-westy- said:
Contract - The wording of my contract is as follows, "You may be eligible for a Company Profit Bonus Share"
Click to expand...

What I say is that this is key part. Forget the "may" part being the key, unless the payout is merit based and you've failed to rerach the minimum target , or whatever. If there is some hurdle to overcome to become eligible, it should have been communicated to you. If it wasn't, they can't withold payment

Stuff what HR say their policies are, your contract overrides anything else

The fact that this is in your contract, implies that it's possible for you to receive an element of Company Profit Bonus Share. I bet you contract also states you are an FTC, so the 2 parts shouldn't be mutually exclusive. If they are, it's the company's problem they've got a poorly worded contract. Your arguement will be it's open to interpretation...your interpretation

If it's awkward to push forward on this, wait until you move on to the next job (with their references under your belt) and then contact them asking for payment

Good luck

<<edit>>
Just because bonus schemes are discretionary, doesn't mean you can be excluded from it at the whim of the company. They have to apply the same criteria to all employees in terms of eligibility and size of payout

Also, many companies say their schemes are discretionary, but if there's a scheme in place and the criteria for payout are met, it's highly unlikely they won't pay it out except in extenuating circumstances eg. sudden and unexpected decline of business before it's paid out

In your case the profit criteria have been met since some staff have been paid out
 
Last edited:
Pipe & Slippers said:
What I say is that this is key part. Forget the "may" part being the key, unless the payout is merit based and you've failed to rerach the minimum target , or whatever. If there is some hurdle to overcome to become eligible, it should have been communicated to you. If it wasn't, they can't withold payment

Stuff what HR say their policies are, your contract overrides anything else

The fact that this is in your contract, implies that it's possible for you to receive an element of Company Profit Bonus Share. I bet you contract also states you are an FTC, so the 2 parts shouldn't be mutually exclusive. If they are, it's the company's problem they've got a poorly worded contract. Your arguement will be it's open to interpretation...your interpretation

If it's awkward to push forward on this, wait until you move on to the next job (with their references under your belt) and then contact them asking for payment

Good luck
Click to expand...

If the contract says you may be eligible and the policy states FTC aren't eligible then there's the black and white statement that covers the may be eligible term in the contract.
 
You must log in or register to reply here.
Back
Top Bottom