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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 73529
Experience:  Qualified Employment Solicitor
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I have resigned from my job and am currently working my

Customer Question

Hi, I have resigned from my job and am currently working my notice period with my last day being 7th May. My company has a discretionary bonus scheme and in March 2020 I received a letter that there would be a 3% bonus for salary earned in the previous year but payment of this was being deferred due to uncertain around COVID. There was no further correspondence on this until today when my colleagues received a letter saying this deferred bonus would be paid in their May salary. I have not received this letter and need to understand what my entitlement is to this deferred bonus. Thanks, Kate.
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: No not yet as I’ve only just been made aware of it and am working from home today.
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: An employee and I do not belong to a union.
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: My employment contract refers to the terms of the bonus scheme and states these are available for inspection at the head office. I have not seen them and there is no electronic copy in the company’s procedures folders.
Submitted: 17 days ago.
Category: Employment Law
Expert:  Ben Jones replied 17 days ago.

Hello, I’m Ben. It’s my pleasure to assist you today. I may also ask for some preliminary information to help me determine the legal position.

Expert:  Ben Jones replied 17 days ago.

Is the bonus entirely discretionary? Please note this is not always an instant service and I may not be able to reply immediately. Rest assured that I am dealing with your query and will get back to you today. Thanks

Customer: replied 17 days ago.
My employment contract states that ‘Any entitlement to Profit Performance Related Bonus will be paid in accordance with the Company Rules from time to time in force. Details of the Bonus scheme are available for inspection at the Company’s Headquarters.’
Expert:  Ben Jones replied 17 days ago.

And you have not checked these rules to understand what your rights are in these circumstances!

Customer: replied 17 days ago.
I intend to inspect them on Tuesday when I am next in the office. There is no electronic copy in the company’s procedures files.
On what basis could I not be entitled to this?
Expert:  Ben Jones replied 17 days ago.

Thank you. The potential for you not to be entitled to this bonus would occur if most, or all, of the following circumstances applied:

The bonus is discretionary and not guaranteed

It is not due for payment on a specific date, or if it is, the employer has the authority to delay payment or move the payment date

No payment is due if the employee is working their notice at the time payment is due, or they have already left employment.

Expert:  Ben Jones replied 17 days ago.

Hope this clarifies for the time being