DH has had an ongoing issue with his work not paying out the bonus he is owed since he started working there 10 months ago. I started a thread asking for advice before here Since then, DH has been really pushing the issue. He has gone to the CEO and discussed the issue with him in detail. The CEO brought up the issue at a recent board meeting. After the meeting he came back to DH and told him that all back money would be paid in this months salary payment. Salary is due to go into the bank tomorrow. Payslips came out today. The bonus money is NOT showing. CEO is away on business and back next week.
In the mean time we'd like to get some legal/employment advice to see where DH stands now. Is there some sort of a solicitor who could review the contract and the current situation and let us know what to do next? Is there a union for the insurance industry that DH could join/ask for advice?
Is the bonus written into his contract of employment?
If so then they are liable to pay it unless there is any clause stating otherwise.
I would formally write to them referring to the part of the contract that mentions the bonus.
In addition I would also take copies of bank statements that clearly show how much this overdraft has been costing you. Include the amount within said formal letter insisting that they cover this cost.
Contract says 'Your basic annual salary will be £X. In addition you will be eligile for a bonus of £X per annum, paid quarterly on achievement of specific business and financial objectives which will be communicated seperately'
Dh has never received objectives or had any sort of appraisal/review. After the first quarter came and went and no bonus appeared, DH set himself a set of objectives and emailed to his boss etc stating that unless they objected he would work towards these for his bonus. They didnt object. However after a month or so he was moved off his project onto a different project making the objectives not too relevant any more.
He has been promised the full bonus amount verbally several times but nothing in writing.
He can bring a tribunal claim for unpaid wages. There is a tight time limit for doing this, 3 months, but his argument would be that he was promised it with this month's salary and it has not been paid.
He can also put in a breach of contract claim which isn't through the tribunal it's through the civil court system.
I would suggest he contacts ACAS 08457 47 47 47 and possibly the CAB to talk through these options.
In terms of my personal advice, I'd suggest he write to the CEO in formal terms stating that if he is not paid monies owed as agreed by the CEO on whatever date by, say 2 weeks time or something, he will be considering legal action to recover the money owed to him.
I have passed on your advice and he is going to call ACAS and CAB at lunch time.
I think he was hoping to be able to look for anther job and have something lined up before he had to take any formal action in case it all goes wrong! It doesnt look like that is an option though with the 3 month deadline, so if ACAS agrees its a good course of action to take in his situation, I think he will just have to go ahead anyway and hope for the best!
Flowery - one more question (quite an important one I think!)
Dh has been looking through his contract again this morning and has discovered that it says 'Your basic annual salary will be £X. In addition you will be eligile for a bonus of £X per annum, paid quarterly on achievement of specific business and financial objectives which will be communicated seperately' on the letter at the front of the contract. It is a formal offer of employment letter stapled to the contract.
In the actual contract behind it, it says 'Your basic annual salary is £X and you are paid in arrears at monthly intervals'
No mention of the bonus in this section, only the letter.
Does this completely scupper DH's chances of getting them to pay it by threatening legal action do you think?
No, any terms and conditions mentioned in the letter would be equally binding. The contract will be a standard document given to everyone with only things like salary figure changed. The letter is personal to him and is still part of his contractual terms and conditions.
You asked about unions as well. I did a search here to find unions in insurance. There is a list of companies on the first page, he should click his company if he works for one of those, alternatively if not he can click on the link to unions that operate within his sector.
CD - his HR are rubbish he says. They wouldnt be able to do anything without confirmation from the ceo. He is away on business and back next week. DH has requested a meeting with him first thing Tuesday.
All promises were verbal.
Thanks for the union info. Will look now and forward on to DH.