A query regarding the wording of a contract and liabilty....

[2point4kids]

Have posted before regarding an ongoing issue with DH's employers not paying out his bonus that he is contracted to get.

He is in negotiations with them (helped along a lot by advice from here!) and we just wanted to query something that was brought up in a meeting today.

DH's contract states
'Your basic annual salary will be £X. In addition you will be eligile for a bonus of £X per annum, paid quarterly on achievement of specific business and financial objectives which will be communicated seperately'

The advice we have been given up to now (on here and from ACAS) would seem to indicate that as the company did not set any objectives (despite remnders from DH) they are liable for the bonus payment.

DH's boss has said today that his legal advisor tells him that as no objectives were set (regardless of whose fault it is they were not set) then company has no obligation legally to pay bonus at all. IE no objectives, no bonus.

This doesnt sound right to us... could it be the true legal position?
They are in the process of negotiating a payment and new salary amount to keep them both happy and we arent sure whether they are bluffing to try and knock DH down or whether they are telling the truth and are in a much stronger position than we had thought...

Any ideas?

They may be bluffing, or they may have taken legal advice but if they have it sounds as though they haven't told the whole story, or at least not everything you've told us.

I've had a glance at your other threads, and it seems at one point, in the absence of objectives, your DH compiled his own, and requested they object if they did not agree with them, which they did not.

Secondly, it seems on several occasions, they admitted he was owed the money and promised him letters confirming that and the money to be paid at various points. They just didn't pay it.

SO not only has he had objectives, but they have confirmed on several occasions that he is indeed owed this money. They can't just decide now that he was not eligible because they didn't set objectives; they've already agreed with him that he is owed it. Plus if a bonus is stated in his contract as part of his remuneration, even if it's contingent on good performance against objectives, they can't just get out of it by not setting objectives.

Thank you.
I really appreciate all the advice you have been giving us (and taking the time to go back through my other threads is very kind of you). Its been ever so helpful.

DH is putting his proposal forward today to his boss on what he will accept bonus and salary wise to drop the grievance. It will be very handy to go in with this extra knowledge.

Hopefully all this mess will be resolved by the end of today FINGERS CROSSED!