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?) 😩

None of your business what he does with his money. YABU

I'm in Australia and when my DH's boss sold his company - part of the sale deal was that some entitlements were paid out before the sale went ahead.

Therefore my DH got paid out for about 4 months of annual leave that he was owed - the new company owner didn't want this as a liability on their books - so people like my DH who had accrued a fair bit of leave, were paid out, whereas others received nothing.

My DH also got a nice payrise because he'd had a company car - the new owner didn't have this perk at the time, so his old boss wanted to compensate him for this before the sale went ahead.

If it's your bosses personal money, then it's really none of your business who they give money to. You sound very entitled if you expect to be given a "piece of the pie". I've worked with people who believed they were hard working and others weren't - in reality they were actually some of the laziest people I've ever come across.

To me, this sounds like certain employees have been paid for their overall long term contribution. I find it a bit odd that the boss is paying from her/his own funds rather than as part of the sale, but if they're long standing employees who didn't actually have a share of the business, then I guess that's reasonable.

yanbu - that is so demotivating for the rest of you who didn't get any money! And the lack of transparency would concern me. What dodgy things are going on that you are not aware of? Are they being favoured in any other ways? Will this affect your job security? I would start sending off CVs.

Ok, I personally think this is rubbish. If its from selling the business I think giving money to some but not others is clearly going to cause ill feeling and resentment. Which actually makes it a pretty bad managerial/ business decision.

I had a friend who worked for a business which was sold. The new company who took over were appalled when the found out the owners had not given any of the money they made from the sale to the employees or given them gifts. The new company went out and bought all the employees gifts to thank them for their work in making the company so successful.

Banging on about it being the owner's money and nothing to do with OP completely fails to understand human nature. Everyone at that company contributed to its success. Rewarding some and not others sends a clear signal of how the work of some employees is not valued, or they are not liked, and that is clearly going to cause bad working relationships and reduce motivation.

Anyone who can't see this is, or would be, a terrible manager.

Yes it may seem that way but the money came from her actually selling the business although she still runs it. Given how hard we work it seems rubbish not to be given a slice of the pie!

The company was her asset - like house or lottery win and she can do as she pleases with her own money.

Also it may be these aren't gifts but money they are legally entitled to - either people who bought shares of the company at some point or ZombieMumEB example of paying out employee entitlements before transfer of ownership.

you boss came into money himself... it HIS money and he can give it to whoever he wants.

Maybe he knows more than you and it was charity, maybe someone asked to borrow some, maybe they are good friends or somehow related etc... non of it entitles you to anything and the fact you thought it did is shocking frankly.

She can do this, legally, but it's clearly a very bad idea.

he new company who took over were appalled when the found out the owners had not given any of the money they made from the sale to the employees or given them gifts. The new company went out and bought all the employees gifts to thank them for their work in making the company so successful.

DH worked for a company -medium sized - built up by a family long hours financial risk - they sold it to a big US company - none of the ordinary employee ie non share holding ones - got anything nor did they expect to I think that a much more usual situation.

We sold a business and used some of 'our money' ie the sale price to pay staff who had been there over a certain number of years a bonus.

Was done with legal/accountancy advice.

It was a thank you for the commitment of staff who had worked for us for quite a while.

It is quite common to do this according to our solicitors. None of our employees had shares.

No, but a gift that is in relation to employment without substantial personal relationship outside of work is earnings and so taxable as employment income.

I’ve seen HMRC investigations before where we’ve had to demonstrate that employees were at the christening of boss’s children etc to evidence their relationship outside of work.

A gift to an employee without those personal links is because of their work and therefore not a true gift. Otherwise there is a whole range of tax legislation (most notably employment related securities, where this could debatably be picked up if the money has derived from a sale of shares in an employing company) that could be avoided by the boss making “gifts”.

Source: I’m an M&A tax adviser with 10+ years experience and advising on this exact scenario in the context of multi million pound deals is my day job.

Sorry, but I would do the same. If for example, I won the lottery, I wouldn't feel OBLIGATED to give money to everyone I work with. There are people I get on with really well and would love to help improve their lives. These people I consider friends and I would happily gift money to them. Why would other employees expect a handout of my personal good fortune?

@Salsagev - don’t waste your time, SeasonFinale has already told me there is no tax consequences to worry about at all. 🙄

It's not your pie.

They pay your wages, they don't owe you anything more than that.

This.