Bonus payment on resignation

[Goldilocks3Bears]

We have a company scheme which is based on company and individual performance. It is paid out quarterly. A percentage is withheld subject to a successful annual review. Mine was in Spring but we’ve now changed the withheld bonus to be paid at the end of the financial year. Which is now.

I am resigning with a leaving date in December and have outperformed all year. There are no PILON clauses in my contract. I’m concerned that as the amount which was withheld is paid in October payroll, the company may argue that as I will be under notice I’m entitled to nothing.

Thoughts?

I would suggest waiting until the bonus is paid before resigning

Bonuses are often not payable while under notice - check the terms of your scheme.

It's in most contracts I have seen that you have no bonus eligibility during your notice period.

Yes everywhere I've worked has said that you are not eligible for a bonus if you are under notice

People tend to resign shortly after it has been paid

Thank you all but I find the notion that bonus earned last December is being held hostage like that. I can’t wait to resign until I’ve been paid. I’d lose the opportunity.

Payments are also often discretionary. The schemes are used to promote staff retention which clearly is not relevant in your situation.

Isn't that pretty normal for a bonus though? Everywhere I've worked has had a bonus paid in March/April, based upon the previous calendar years performance

"the company may argue that as I will be under notice I’m entitled to nothing."
But they could only argue that if the terms and conditions of the bonus scheme state that individuals serving notice aren't entitled to receive bonuses. Either it says that or it doesn't. Does it?

No it just says payment is after successful annual appraisal but because all payments are now made end of the FY regardless of when your appraisal is, it’s a bit fuzzy.

The logical thing would have been to move appraisals too but that didn’t happen.

If you’ve had a successful appraisal and therefore have met the criteria, and there’s no requirement not to be serving notice, then you’re fine.

If there isn’t anything about it not being payable if you’re working your notice and it’s not discretionary then I guess you’re fine. Everywhere I’ve worked you wouldn’t get it but it must vary a lot.

I had one, paid out after I had left. I had filled the requirements of the scheme. Nothing in the terms about not being paid if you had left the company.