Bonus due but may be leaving job

M

monkeyboy

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I have been offered a job that seems ideal to my requirements. I am due a substantiall bonus ( 15% of a good salary ) at the end of June from my current employer. If I give my notice to finish should I be entitled to this bonus?
I will be leaving on good terms ( if I do ) but what is the employment law situation here, as the bonus regardless that I am leaving, is for the preceding years work.
thanks in advance for your points of view.
 
I think the answer depends on what's in your contract.

Perhaps you tell your new employer that you have to give 2 months notice - that'll take you into mid-July - and therefore you should be around to get your bonus.
 
Your bonus is almost certainly entirely descretionary in contractual terms, so your employer is under no obligation to pay it. I wouldn't hand in my notice until I had the filthy lucre in my account. Tell your new employer of the circumstance - explain that you just can't afford to walk away from the bonus. You may find they offer you a 'golden handshake' bonus to replace it! [Some years ago, it was possible to do 'golden handshake' bonuses tax-free, I don't know if this is still the case].
 
RainyDay said:
[Some years ago, it was possible to do 'golden handshake' bonuses tax-free, I don't know if this is still the case].
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I very much doubt it. Was it actually tax free in the past or just something that people did on a nod and a wink basis?
 
ClubMan said:
I very much doubt it. Was it actually tax free in the past or just something that people did on a nod and a wink basis?
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Very definitely legal.
 
Definitely stay until you receive your bonus. A colleague of mine handed in her notice here in Januray with the bonuses due in February. She was told by management that bonuses were discretionary and for those who were committed to the company, hence the reason she received nothing. The work that she previously did to earn the bonus counted for nothing.
 
Have to agree with clipper - I was in your situation last March - handed in notice in February, left mid-march. bonus due to be paid mid-march. I argued the toss and when it came down to it the company caved in - however they didn't pay me a bonus - they paid me a "goodwill" amount which equalled my bonus. And I got a letter stating that bonuses are non-contractual and discretionary but in recognition of all my good work last year they were paying me this goodwill amount. They didn't call it a bonus because they didn't want to create a precedent in relatio nto other people leaving.

So stay if you can!
 
If you have received the bonus on a regular basis in the past (e.g. every year) then this could be deemed to be custom and practice and as such form part of your contract of employment. If so you could maybe have an entitlement to it. As it has been paid in the past you may have a reasonable expectation that you will get it again this year (except if tied into the contract that people on notice not entitled to bonus payment)
 
Thanks all.

Ill play both sides...sit down with current and will leave on good terms should get the bonus as I have previous 3 years and also go for the Golden handshake!!

:D
 
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