Is this legal or just unfair

[firststeps]

Just got my end of year bonus and it has been almost halved due to the fact I have been on maternity leae for 5 months of this year (January - June), I have been with the company for 7 years and my bonus has either increased or stayed the same every year - this is the first year it has gone down. I was told that it has gone down because I was away from work and therefore not contributing. I thought that all benefits had to stay the same (I had my company car and mobile) whilst I was on maternity leave. Can anyone offer any advise?

I dn't think a bonus is treated as a benefit in the same way since it is discretionary, sorry .

I think you are entitled to the same bonus if you didnt take extended Mat Leave.

Im not 100% sure though.

It does depend on what basis the bonus is given. Mine wasn't prorated but is based on a calculation.

What would happen if you were off work sick for 6 months? You would probably have a discrimination claim if the same treatment wasn't followed.

hello first steps
whether you are entitled depends on whether the bonus is "remuneration" which is a complex question. (if it is, then they are not obliged to pay it during mat leave.)
what is the nature of the bonus? is it based on your performance or that of the branch/company/whatever?
what does your contract say (look under the bonus part AND the mat leave part)
was this OML or AML?

it is based on the performance of the branch and company as a whole rather than individual performance. There is nothing in my contract about the bonus, and my leave was OML

I would raise it as a grievance and mention the phrase "sex discrimination" - after all they couldn't use that line on a man, could they? I think you'll find that they might review their decision.

I would contact acas for advice and support

www.acas.org.uk

08457 47 47 47

In my company, your annual bonus is based on the number of days worked, so if you are off sick or on mat leave then your bonus is reduced accordingly.

Most annual bonuses are discretionary - not part of the contract. However by paying them regularly year after year, they become contractual - people sue if they get no bonus at all. Companies will often say that the bonus is dependent on individual, team and company performance. If the company has done badly this year, perhaps everyone is down 40%. Or perhaps your department has done badly? Or you did badly (while you were there)? Assuming you can discount all of these, then the reduction must be down to your absence. If your absence was solely OML, then this is sex discrimination and IT IS ILLEGAL.

Most banks will make adjustments for AML, often on a formula basis - but since a formulaic calculation is also sex discrimintation they will never admit it. They will say that the reduction during AML reflects individual contribution.

I am about to have the same battle with my employers (they have sent me a letter saying it will be pro-rated).

The problem is that there is currently no firm precedent in law for all cases.

If the employment contract states that bonuses will be paid and indicates how they are calculated and relates them directly to performance, or if - as clerckent says, they are the same year after year, then the company CAN reduce them proportionally.

If they are termed by the Company as totally discretionary then you MAY have a case for sex discrim. It hasn't been proven in court yet though. All lawyers currently advise employers in these situations to pay the full amount because of the uncertainty and I think the balance of opinion is that if it did come to a tribunal the employer would have a difficult time proving it isn't discriminatory. Saying that, I work in the city and loads of banks seem to be getting away with it currently.

You can read up on it by doing the following internet searches which may help you gauge what the position is with regard to your particular company...

asda hoyland and discretionary bonus maternity leave

good luck