REDUNDANCY & Company Bonus - question...

[looneytune]

My husband and several others were made redundant before Christmas and were told (in writing) that IF a company bonus was paid once they'd left, they would receive their share (as it was based on work from July - Nov) when the others do.

Well.....a bonus WAS paid and people still working at the company got theirs paid with their salary on 28th Feb. I know this isn't long ago but dh and some of his friends who were made redundant are concerned that they haven't been contacted.

Are they able to NOT pay the bonus or do they legally have to pay? They were all told what % they'd get if a bonus was paid so as one was paid, they are expecting something.

Anyone in the know able to advise?

TIA

two things here - has your dh or any of his ex colleagues asked to find out if payment not being made? Payment to ex employees can take longer - remember waiting for months for release of savings plan when I left somewhere.

Secondly the legality of whether they can pay it will depend on the terms of hte bonus scheme - I am not an expert here but if it is a voluntary/discretionary scheme then they may well not be obliged to pay it - but I must admit this does appears to contradict the letter they got on this.

Depends on terms of contract and bonus scheme as poppy says. I'd not panic yet, they've put in writing that the bonus will be received and even the percentage they'd get, so it sounds as though intentions were good.

I'd give it a few more days before thinking they're trying to get away with anything, and obviously make contact to ask first as well.

Bonuses are usually paid via monthly payslip, so if he is no longer getting one of these, then there will be a more complex process of raising a cheque etc.

He should just politely call his contact in HR (or whatever) and ask!

Oh, and when I say 'ask', I mean ask WHEN it is being paid to them, not IF!

No harm is asking "when". It is more complex to pay someone who has left and they will probably have to have a discussion with the tax office to decide how to deduct any tax due etc.

Thanks everyone He's not planning on contacting them about it for a while because he starts a new job on Monday and the reference process hasn't been completed yet. Once all that is sorted, he'll have waited long enough to ask them when he's getting it

Thanks again