Am I entitled to a Xmas bonus?

J

jonah100

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Can someone help me with good advice.
I have recently submitted my notice to my existing employer. I have been employed by this company in a senior management position for four years and will complete 11 months of this year when leaving.

We are paid an annual bonus which I have requested be paid pro-rata for 2007 following the final calculation in early 2008. This has been refused as they now state that the bonus is only applicable if you are employed on the last day of 2007. (There is no mention of this in my contract).

Additionally throughout my employment I have had the unfortunate responsibility to dismiss employees or accept their resignation etc. for various reasons including Gross misconduct. Each of these has been paid his or her bonus pro-rata for the year.

The Management scheme is a seperate bonus scheme and the calculation and targets are slightly different although the fundamentals of the schemes are the same.

Do I have grounds to fight this and demand the payment on a pro-rata basis as I feel discriminated against based on my position within the company?
 
Re: Discrimination between employees over bonuses

Apart from your statutory rights here your contract of employment would presumably be the final arbiter although where that is vague on matters precedent may also be relevant. In short it's difficult to say given the information posted. You can find out about your statutory rights by contacting the DETE Employment Rights section. For clarification of you contrctual rights you may need to talk to a solicitor if necessary.
 
Re: Discrimination between employees over bonuses

"Usual practice & customs" are also important. I have come across similar provisions in contracts so that in itself wouldn't be uncommon (having to finish out the year).

As there is no such provision I'd be adamant that it is due, and threaten to go to the Rights Commissioners/EAT shoudl you not receive it in 2008. You might note you only have 6 months from the termination of your employment within which to take a claim (save for exceptional circumstances).

Keep a note of the cases in which you saw it paid pro-rata as that will be important to your claim.
 
Re: Discrimination between employees over bonuses

Last year Davy stockbrokers got taken to court over not paying a bonus to an employee who left, they lost the case. It might be worth your while looking up its details and informing your management!

Link: http://www.rte.ie/business/2007/0126/davy.html

Towger
 
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Re: Discrimination between employees over bonuses

While it is probably too late for the OP, it is well worth taking timing of bonuses into account when handing in your notice. If a new employer is rushing you to leave before bonus payment, you can push them to buy out the bonus for you.
 
Re: Discrimination between employees over bonuses

Are you a member of a Trade Union? This is the sort of thing that TU's are good at in my opinion.

I dont agree with ClubMan's advice above and think that there is little to be gained going down the legal route with solicitors etc.
 
Re: Discrimination between employees over bonuses

I would say it would be difficult to be in a TU, and also be in management with firing / disiplinary responsibilities ....

OP,

What was outcome ??
 
Re: Discrimination between employees over bonuses

ajapale said:
I dont agree with ClubMan's advice above and think that there is little to be gained going down the legal route with solicitors etc.
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I just suggested talking to a solicitor if necessary to clarify one's rights in relation to contracts/precedent etc. Not necessarily suing the company etc.
 
Re: Discrimination between employees over bonuses

ajapale said:
Are you a member of a Trade Union? This is the sort of thing that TU's are good at in my opinion.

I dont agree with ClubMan's advice above and think that there is little to be gained going down the legal route with solicitors etc.
Click to expand...

Sorry, I'll echo clubman...again.
 
Re: Discrimination between employees over bonuses

jonah100 said:
Do I have grounds to fight this and demand the payment on a pro-rata basis as I feel discriminated against based on my position within the company?
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Discrimination is perfectly legal as long as you are not being discriminated against on the specific grounds which are illegal under the equality acts e.g. gender, sexual orientation, etc.

So an employer is entitled to discriminate between people who are being asked to leave and those who have chosen to leave.

Most annual bonuses are annual i.e. they are paid only to those who are employed at the end of they year. I have not heard of them being paid to people leaving before the end of the year. Most people do not leave until the Xmas bonus is paid.

I don't think it has to be mentioned in the contract. Most Xmas bonuses are at the discretion of the company.

Brendan
 
In a slightly different scenario to the OP, I am ready to hand in my notice this week but have 3 months notice to work. So I will still be employed by the company when bonuses are payable at the end of Dec. Can they withhold from me?
 
What does it say in your contract? However i would doubt that they can withhold in any circumstances where the year is worked.
 
Depends on the contract - my contract states no bonus will be paid to anyone who has handed in their notice
 
There is no specific wording in my contract about what happens when/if you leave. It just states that the bonus will be payable upon achievement of KPIs. These KPIs will have been achieved come end December so I'm presuming that I will be paid despite the fact that I will be working my notice at the time.
 
mobileme said:
In a slightly different scenario to the OP, I am ready to hand in my notice this week but have 3 months notice to work. So I will still be employed by the company when bonuses are payable at the end of Dec. Can they withhold from me?
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Update: Bonus was paid at end Dec despite the the fact that I was working my notice at the time. There was nothing in contract about it but my boss said that all KPIs were achieved so he had no problem paying full amount.
 
mobileme said:
Update: Bonus was paid at end Dec despite the the fact that I was working my notice at the time. There was nothing in contract about it but my boss said that all KPIs were achieved so he had no problem paying full amount.
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Good on him.
 
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