Employment law question - bonus

[m2287]

The company I work for started a bonus scheme last year, it was based on several performance metrics over the course of June to December and the maximum bonus payable was 35% of our salary. We were meant to be paid this bonus on 01/02/2016.

The bonus was heavily weighted on p&l performance, the company have not released the p&l's from November and December to us and are refusing to when we have asked, because of this we still do not "officially" know our finalised metrics for last year although we can work out most of it ourselves, we don't have the data to work them out 100%.

on the 01/02/16, no one in the company was paid any bonus, no one in head office or HR was forthcoming as to why.

on the 26/02/16, HR sent an email to all sites stating:

"Dear All

Due to the data integrity, we will not be paying the bonus until further notice.

As soon as the issue has been resolved the payment will be made.

Please ensure you cascade this announcement down to your respective Restaurant Managers.

Thank you for your understanding.

Regards
HR"

Now they refuse to reply when questioned over what this means, we have heard through rumours that the finance department have messed up the P&L's so they aren't accurate (this is out of our hands!!!).

To date today we have heard nothing further from anyone about the bonus. What can we do?! As far as I know the bonus can be withdrawn at any time as it is not written in to our contracts?

 

[camerafodder]

Are you saying that there are no written contractual terms for the bonus?

 

[m2287]

Are you saying that there are no written contractual terms for the bonus?

There is a bonus scheme where the terms are articulated but at the end of it is written:



The Bonus scheme is discretionary and non-contractual, and as such it can be amended, reviewed and withdrawn without notice.

 

[mattc43]

There is a bonus scheme where the terms are articulated but at the end of it is written:



The Bonus scheme is discretionary and non-contractual, and as such it can be amended, reviewed and withdrawn without notice.

Legally, not an awful lot you can do about this then. The business has a great(!) opportunity to completely dis-engage and demoralise all of it's staff but that is their choice.

 

[kid-jensen]

Time to have a word with the Union rep.

If you don't belong to a Union, join quick!

 

[neilrr]

please ensure you cascade this announcement down to your respective restaurant managers.

l.o.l!

 

[markmifsud]

I don't really see an issue. Someone has messed up somewhere in the creation of the P&L. They need this to be accurate before they can award any bonuses. I know you might want/need your bonus but you cannot really expect them to guess on a final figure.

As to not discussing what the exact issue is, it might be that there will be disciplinary action, or even criminal charges so they will not be in a position to comment right now.

 

[Meldrew2]

The company will be required to file accounts at Companies' House in due course - this might give you access to the relevant data.

While "the bonus may be withdrawn without notice" there has been a statement to the effect that "As soon as the issue has been resolved the payment will be made" and as such it can surely be implied that as of 1.2.16 the scheme had not been withdrawn there is perhaps still some hope…

I guess the questions to ask are:

Should this be brought to shareholders' attention at the AGM?

Would the company respond to a legal challenge?

Would a Social Media campaign have any effect?

 

[m2287]

I don't really see an issue. Someone has messed up somewhere in the creation of the P&L. They need this to be accurate before they can award any bonuses. I know you might want/need your bonus but you cannot really expect them to guess on a final figure.

As to not discussing what the exact issue is, it might be that there will be disciplinary action, or even criminal charges so they will not be in a position to comment right now.

The issue is that we don't know if the inaccuracies are in the P&L's, they haven't been released and we haven't been told. I'd find it strange that only the final 2 months of the year were suddenly wrong.

 

[grober]

You might have a case under implied contractual rights but success would depend on the exact details of the case contracts signed / what the bonus scheme says in writing etc - the sort of detail only someone versed in current employment law would know. try Citizens Advice ??

The contractual rights of employees | lawpack.co.uk

Discretionary bonuses: when can employers not pay?

 

[Bellow]

Please ensure you cascade this announcement down to your respective Restaurant Managers.

Do I smell a food chain?
Are you sure what is happening isn't a 'B&Q'? Where due to the implementation of the new national minimum wage the additional cost will come not from profits but from other so called employees' perks such as bonuses or overtime rates (for weekend/evening working) being nullified.

 

[Deleted member 6183]

The company will be required to file accounts at Companies' House in due course - this might give you access to the relevant data.

While "the bonus may be withdrawn without notice" there has been a statement to the effect that "As soon as the issue has been resolved the payment will be made" and as such it can surely be implied that as of 1.2.16 the scheme had not been withdrawn there is perhaps still some hope…

I guess the questions to ask are:

Should this be brought to shareholders' attention at the AGM?

Would the company respond to a legal challenge?

Would a Social Media campaign have any effect?

Do all of these if you want your cards marked.

 

[John]

I've always treated a bonus as exactly that...

Saves any grief when it doesn't arrive!

That said, that doesn't mean I wouldn't pursue in a situation like this.

 

[John]

You might have a case under implied contractual rights but success would depend on the exact details of the case contracts signed / what the bonus scheme says in writing etc - the sort of detail only someone versed in current employment law would know. try Citizens Advice ??

If you have had it every year for say 10 years, quite possibly.

As it has only been running for a year, no chance!



My other half is in HR and deals with employment law - she advises to wait for them to sort the problem out as they have communicated that.

 

[Deleted member 6183]

If you have had it every year for say 10 years, quite possibly.

As it has only been running for a year, no chance!



My other half is in HR and deals with employment law - she advises to wait for them to sort the problem out as they have communicated that.

Or he could take to twitter and bitch about it to the employer, how does your missus reckon that will pan out?

 

[m2287]

I've only been there 2 years, from what I've been told the same thing happens every couple of years and the bonus never gets paid. I'm not one to jump from job to job, my last stint was 10 years for the same company...

Oh well I'm walking, got an interview elsewhere next week! Two and a half months should be more than enough time to iron out any issues, I'm sure if the tables were turned and I couldn't get something done within this kind of a timescale I would be out the door.

 

[John]

Or he could take to twitter and bitch about it to the employer, how does your missus reckon that will pan out?

HR departments love that. Actually my other half does when someone actually does do that. I'm sure HR people are power and control freaks.

I've only been there 2 years, from what I've been told the same thing happens every couple of years and the bonus never gets paid. I'm not one to jump from job to job, my last stint was 10 years for the same company...

Oh well I'm walking, got an interview elsewhere next week! Two and a half months should be more than enough time to iron out any issues, I'm sure if the tables were turned and I couldn't get something done within this kind of a timescale I would be out the door.

35% is a fat wad of dosh to be walking away from though (unless you earn a fiver annually).

If you have something better lined up, I wouldn't let the bonus stand in the way (I was prepared to give up mine at the my last place if I found something that meant it wasn't paid but luckily I handed in my notice two weeks after being paid it - just by chance) but if you are not at that stage - surely better to wait for the cash and then do something?

 

[Borys]

I'm working for one company 15 years now. Every year was paid 15% bonus.
We where bought by new owners last year and guess what first time bonus was not paid. Decision was made 5pm day before wages.
All bonus criteria was mess up when TUPE took place and I cannot do nothing about it. All of us tried. We are only another number on payroll unfortunately. Things like this gets to me a lot. I really feel for people on min wages as every extra counts, people on higher positions in most cases forget how hard it is to make a living these days (I know for a fact their bonuses are fat). Some understanding, communication would be nice.
Some really work hard and a nice thank you wouldn't hurt

 

[m2287]

HR departments love that. Actually my other half does when someone actually does do that. I'm sure HR people are power and control freaks.





35% is a fat wad of dosh to be walking away from though (unless you earn a fiver annually).

If you have something better lined up, I wouldn't let the bonus stand in the way (I was prepared to give up mine at the my last place if I found something that meant it wasn't paid but luckily I handed in my notice two weeks after being paid it - just by chance) but if you are not at that stage - surely better to wait for the cash and then do something?

It's not just that if I'm honest, new pay rates mean I have supervisors in stores getting paid the same as team members, I was told "I didn't give them a pay rise, the government did so it's not my problem"... Sorry but when they all quit it will be your problem!

The bonus is just that, a bonus, I can live without it but it would have been nice! Realistically going by the company's track record, I can't see it being paid in 2016.

 

[Borys]

All should have a pay increase. Min wage went up 70p so all others should have the same increase ..... but figures for management is more important then keeping employees happy.
Example at my work place. Employee with us 7 years getting 6.80£ after min wage up was increased to 7.20£ .... after 7 years of service ending up on min wage...,where is logic in this?????