Is our boss allowed to do this?

[Jones9876]

We have recently found out that our boss who has recently come into money has given a significant amout of money to a few other employees as a 'gift'. We are naturally pissed off! The money was paid straight into their bank accounts. He has denied giving any money at all.

Are we BU to feel so annoyed about it (particularly as those who didn't get it work a hell of a lot harder than some of those who got the money?) 😩

But they can tax free up to £300 a year with no more than £50 in cash/vouchers per month. Cash or gifts to value

They can do up to £300 a year

Their company was their life and their coworkers were friends who visited them when they were ill. I think friends is stretching it but it was made clear there was money for them

Why is 'friends' stretching it? People can make friends through work, the dogma on mn that colleagues can never be friends on mn is rubbish. My mum and her closest friend worked together in the 70s and are still like sisters

So, I am assuming that the money went to some managers and that's why you are pissed?

As others have identified, this is a personal act rather than a professional one. He wasn’t obligated to do this, or expected under employment norms. So what it demonstrates is who he actually values and views as being a real asset to the success of company. Perhaps those who didn’t get any money should reflect on their contribution compared to those that did?

How do you know that the colleagues who received the money didn't have a small share in the company, and they are just getting their part of the buy out?

It's not uncommon for people who have been at small business's for years to put some money in and get a % of the business.

If she dies in the next 7 years it could be subject to inheritance tax if over a certain amount depending on what other gifts she has given

I was a boss once of a team. If I ever came into money, there are about 5 people on that team that I would give a lot of money to - the rest nothing. However I am no longer their boss so not the same as if there was an ongoing employer relationship with people being personally gifted.

Some people are much better humans and much better employees than others and salaries don't compensate the good ones. It always bothered me to see some of the lowest paid do the best work, be the most dedicated workers, and the nicer people. Unfortunately due to union rules, I couldn't do anything to more fairly compensate them.

It's not that your boss doesn't have the right to use her money as she wished but odd that she didn't consider what the consequences would be if some people got money but others didn't. The Richer Sounds boss did this this really well, giving bonuses based on how long people had worked for the company and setting up a trust fund for the workers.

In my world £300 is not a “significant amount of money”. I appreciate I may get flamed for that but I assumed OP was talking about thousands not £50 a month for a few months.

Quick someone tell the tax tribunals that they are no longer needed, SeasonFinale on Mumsnet can say with certainty how tax law should and should not be applied.

I think this is a probability.

and office gossip has turned it into ‘a gift’.

However, if it was a gift, I don’t believe that someone who built a business to the point they sold it for a lot of money didn’t think out tax and legal implications of gifting money and it’s likely to air tight.

But I do think the shares situation is more likely.

It's not that your boss doesn't have the right to use her money as she wished but odd that she didn't consider what the consequences would be if some people got money but others didn't

This is a fair response. It's very easy to sit back and say 'it's none of your business...it's their money etc'. But in reality I see exactly what the op is saying as what the boss done now is effectively create a two tier system and a breeding ground for resentment. It's not just the money, it's the principle of it.

People are missing the point and whether the boss gave them 5 pounds each or 50000 pounds it was automatically going to create division and bad feeling. I think people here are being somewhat obtuse here.

IDK - if I had a big lottery win that meant I would leave work, I would gift some, not all, of my direct reports $$ and funnily would also gift my boss money.

If the win was that big in magnitude, I’d definitely be asking them what they needed to retire/leave and pursue other life goal options etc and handing it over if it was within scope of my ‘spare $’ pile. I would not feel obliged to give it to everyone I work with be it in capacity of manager, report or colleague!

Corporate lawyer here. It may well be that these staff had a share option in the business which means on a sale they can acquire a shareholding which entitles them to a slice of the sale proceeds . It’s very common (and very tax favourable) for employers to give share options to key employees that work in this way under certain HMRC approved schemes, either as a carrot to get them to join the business or as a carrot to stay employed within that business. The fact the trigger was the sale makes me think this may have been what happened.

This

Not the point of the thread but isn’t it funny how most people assumed the boss was a man.

Just reread and first post op says he then they say she… my bad 😂

Given that the first post said "He", not really.

OP - if it's from the business sale, then it could well be share options as mentioned above. The people who you think work hardest aren't necessarily those who have share options. (Nor even necessarily those who have actually been fundamental to the company's success.)

Well you would assume it’s a man given it was a man in the first post. 🙄

Money really does bring out the best in people doesn't it?😅

Ultimately, yes your boss can give her money to whomever she chooses.

particularly as those who didn't get it work a hell of a lot harder than some of those who got the money?

Why do you think he paid them money if they have not worked hard in some form?

It is interesting how it changed from he to she.

Also the male boss came into the money but the female one got it from selling the business.

Plymouth Brethren businesses do this. Give money to only the Brethren staff members.