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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 44961
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I have been informed verbally that my bonus will not be paid

Customer Question

I have been informed verbally that my bonus will not be paid this year. I had mentioned to my bosses previously that I was thinking of working elsewhere but have not handed my notice in. My PDR results were noted as having exceeded expectation and was congratulated on promotion. In addition I was promised "in writing" 2 separated sums of £5000 as Incentive payments for completion of 2 jobs which were due to be paid along with my bonus which have also been told I will not now receive. My bonus (30% of my annual Salary of 52k) is based on percentage targets which were all confirmed as achieved in my PDR, all of which was signed off by my line manager and director.Can you give me some advice as to how I should proceed.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. firstly can you tell me how long you have been employed there please.also do you still have the promised notification in writing of the payments.
Customer: replied 1 year ago.

I have been employed here for 5 years. I have the letters of the written notification and the signed PDR'S.

Expert:  Ben Jones replied 1 year ago.
Thank you for your response. I will review the relevant information and will get back to you as soon as possible. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.
Expert:  Ben Jones replied 1 year ago.
Many thanks for your patience. When it comes to workplace bonuses, there are two main types: contractual or discretionary. There can be an overlap where a contractual term gives the employer discretion over payment, or there can also be further sub-categories, for example performance-related bonuses or bonuses payable subject to other conditions. What is certain is that the legal issue of bonus eligibility is a rather complex matter and would mainly be subject to interpretation of individual circumstances and the wording of the clauses in question.
A common example is a bonus clause which is contractual but which gives the employer the discretion to decide whether it would be payable or not. This is also a situation which would cause most disputes between employee and employer. Whilst at first glance this may give the employer full discretion as to whether the bonus should be paid or not, this will not always be the case.
If the eligibility to a bonus is based on performance criteria, such as in this case, then first of all if an employer is required to form an opinion of an employee's performance they must do so in good faith and be fair. Any other performance criteria would usually be determined based on qualitative data. Assuming the performance conditions have been met, an employer will rarely be able to refuse payment of the bonus as doing so would be acting in bad faith and considered unfair. So this is an example where the employer's discretion is removed once the relevant eligibility conditions have been satisfied.
It follows that even though a bonus clause may be described as being entirely at the employer's discretion, there are circumstances, mainly in performance-based eligibility, where this discretion is removed and the bonus would automatically become payable if the eligibility criteria have been met.
In your case you were promised a bonus for meeting specific performance criteria, which were met. Therefore, the withholding of the bonus is likely to be unfair and you could pursue it further. First of all you should raise a grievance. Next you could treat this as unlawful deduction of wages and can follow these steps:
The employer should be contacted in writing, advised that this is being treated as unlawful deduction of wages and ask them to pay back the money within 7 days. Advise them that if they fail to pay the money that is owed, legal proceedings could follow.
If the employer does not return the money as requested, the following options are available:
1. Employment Tribunal - the time limit to claim is only 3 months from the date the deductions were made. To make the claim, form ET1 needs to be completed and submitted - you can find it here: https://www.employmenttribunals.service.gov.uk/employment-tribunals
2. County Court – this is an alternative way to claim and the advantage is that the time limit is a much longer 6 years and is usually used if you are out of time to claim in the Tribunal. The claim can be made online by going to: www.moneyclaim.gov.uk.
Hopefully by warning the employer you are aware of your rights and are not going to hesitate taking further action they will be prompted to reconsider their position and work towards resolving this.
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Expert:  Ben Jones replied 1 year ago.
Hello, I see you have read my response to your query. Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? If your query has been dealt with please take a second to leave a positive rating by selecting 3, 4 or 5 starts from the top of the page. If you need further help please get back to me on here and I will assist as best as I can. Thank you.

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