Colleague missing out on owed bonus because she's leaving - is this legal?

[UbercornsGoggles]

I work for a public sector organisation that takes at least 6 months to agree its pay award with the unions.

A colleague is leaving next month. Last year (year ends in March) she achieved the highest performance rating and is therefore due a lump sum bonus payment. However this isn't paid until the organisation and unions agree the annual pay award which is never earlier than October. The policy is that if someone leaves before the pay award is agreed they don't get paid their bonus.

It just doesn't seem fair that my colleague won't get paid a sum she has been promised and that she earned between April 2018 and March 2019. Anyone out there know if she has legal grounds to chalenge the policy?

That’s quite normal.

She has not been promised it prior to the agreement between the employer and the union. The rules are the rules. They apply equally so it’s best not to leave before the agreement is signed.

I had a colleague in the same position, handed his notice in not realising it meant he left 2 days before a 6% bonus and he therefore wasn't entitled to it. He asked nicely if he could put his leaving date back 2 days, not surprisingly company said no chance. Flung his toys out the pram and left without serving any notice, risky move as reference hadn't been given yet!

All comes down to contacts, if contact says bonus will be paid pro-rata when leaving she is entitled, if not she won't have a chance.

Yep, normal in my previous industry.
Can’t she leave after bonus is paid?

Entirely legal unless the bonus is specified in her contractual compensation, i.e. if conditions X and Y are met, she WILL be paid Z amount by $date. Bonuses are almost invariably discretionary, however. They are a retention tool, not contractual compensation. So if the news you are leaving gets out before the bonus hits your bank account, generally, no bonus.

Always wait until it hits the bank account before resigning.

As long as the terms and conditions are clear, and not discriminatory or anything, then this is fine. It sounds like it's clearly set out that bonuses aren't paid out if someone leaves before the pay award is agreed, so if your colleague has chosen to leave sooner, that was her decision.

Yep same where i work in civil service. If you leave you don't get the bonus.

It's not a secret and its advertised every year with all the guidance.

If you want your bonus you need to still be in your job for October. Hand your notice in after

Totally normal, and legal. Your colleague hasn’t a leg to stand on.