Daughters bonus withheld

[4seasons]

My daughter was due quite a large end of year bonus. She worked hard this year and met all her targets and received praise for her work . She has a new job lined up and was honest enough to tell her company about it. Apparently as she is now on notice to leave ( 3 months notice ) they say they can refuse her her bonus as this is part of her contract ( this is a generic contract for all workers ). Having accepted this but obviously upset about it she has found out today that 3 other people have just received their bonus and then handed in their resignations . I feel she has been penalised for being honest and being prepared to work her full 3 month notice period. Is there anything she can do about this ? Small claims court ? Financial Ombudsman ?

I doubt there's anything she can do. If it's anything like our system it's a discretionary bonus so entirely at the whim of the employer whether to pay or not. Everybody waits for the bonus round before they hand in their notice. Some people don't even wait for the day to be over before they hand in their notice but they do wait for the bonus to be awarded. I think she's made an obvious tactical error.

Not really, if it's part of her contract. Those three people obviously read their contract before job-seeking.

Not uncommon I'm afraid, if you hand your notice in then you forfeit the bonus. Hence the rash of resignations after the bonus is paid. One to remember for the future.

It's standard that if you have given notice, you aren't paid your bonus.

Unfortunately, her colleagues have done it the right way. Your daughter has the moral high ground but unfortunately she is unlikely to be legally entitled to her bonus.

I'm afraid you may be right and she has made a tactical error which will cost her dearly. The other people have just taken their bonus and left ! Not even working their 3 month notice. I am tempted to suggest she doesn't work her notice either but she won't want to look unprofessional and may want to work for them again in the future I suppose. It's a hard lesson in life and not one which will encourage her to be honest in the future. Very depressing.

Standard practice I'm afraid . Most would hold off handing in notice during bonus periods.

the life lesson is not to lie, it is to read contracts more carefully. Sorry.

It's not about being honest it's about reading her terms of employment.

An element of a bonus system is as a retention tool. Paying them to people on notice would defeat the purpose.

Your daughter should see a solicitor/CAB.

She may have a contractual right to the bonus; she may not. It may be discretionary; it may not. She may have forfeited the bonus by resigning; she might not....

I think you get my drift.

There are too many variables for anyone to give advice here. It's important to read the actual terms of the contract and bonus policy (if there is one) before anyone can advise you.