Employment Contract

Author
Discussion

Ej74

Original Poster:

1,038 posts

186 months

Thursday 5th April 2012
quotequote all
A quick summary :

So the Wife has a employment contract with base pay plus a bonus
Job was sold on the basis that the salary is in fact base pay plus bonus (no discussion of achievement)
Only 1 target set for the whole year - which she has achieved

Now they don't want to pay the bonus it seems

They have stated they gave her the wrong contract - even though they stated the salary will be 40k as an example (30k plus 10k (bonus)) and the bonus was just a meteric to get the salary where it needed to be.

So my question is :

Do they have room to back out paying the bonus - as the only target set has been acheieved ?

Cheers

Gargamel

15,015 posts

262 months

Thursday 5th April 2012
quotequote all
Is the bonus discretionary or contractual ?

Ej74

Original Poster:

1,038 posts

186 months

Thursday 5th April 2012
quotequote all
Simply states bonus of upto XXXX which is listed in the contract.
However only 1 target was set which has been acheieved

After 12 months and employer can't turn around and oh we made a mistake - in minds eye the contract is binding

Gargamel

15,015 posts

262 months

Thursday 5th April 2012
quotequote all
Sure, just take a step back from the sense of entitlement for one moment.

Some contracts will say, all bonuses are performance related, and discretionary, so read it carefully.

If as you state your wife's employer has already said, you have the wrong contract, then I would tend to say they are going to struggle.

So check your facts, look for discretionary, or other similar terms.

I would suggest your wife speaks to HR, shows them a copy of the contract, and asks them what is the situation. They cannot in my view retrospectively issue an alternative contract, however bonuses are rarely contractually guaranteed.

Being entitled is one thing, getting it into the bank account is another...


Ej74

Original Poster:

1,038 posts

186 months

Thursday 5th April 2012
quotequote all
Fair Point Mate ! No HR dept where she works.

No mention of discretionary in the contract.

Contract states something like "...base salary is XX plus a bonus of upto XX..."

I understand if targets are set and not achieved then no payout and also discretionary etc, but no mention of wither. 1 target set for the year that has been achieved. So how can they then state it will not be paid.

My point of view to her is just to walk out and F'them


Gargamel

15,015 posts

262 months

Thursday 5th April 2012
quotequote all
I would suggest that she ask them what they suggest is the best way forward.

It won't look good for them if they pay nothing, she needs to document all the evidence, regarding her target and it's achievement.

In absolute terms it could be a case for constructive dismissal. If they offer no money, insist on an alternative retrospective contract then she should find an employment lawyer ona no win no fee.

Whilst they may not have an hr department (which probably explains why their contracts are so shabby) someone must have written the contract... Does it have a policy for raising a grievance, if not she should request a copy,


Ej74

Original Poster:

1,038 posts

186 months

Thursday 5th April 2012
quotequote all
Cheers

By the way she works in recuitment (Social)

Gargamel

15,015 posts

262 months

Thursday 5th April 2012
quotequote all
Then my theory would be they don't actually have the money at the moment.

If her contract was bill x and your commission is y , then they don't have a leg stand on.

However plent of ex RC's have been ripped off on bonuses. Good luck

Ej74

Original Poster:

1,038 posts

186 months

Thursday 5th April 2012
quotequote all
No such term exists in her contract

The only target which was set last year per appriasal was met and the appriasal signed by both parties

You are indeed correct they don't have any money (she has found out from someone internally, but they all know this anyway)

I would be happy if they manned up and accepted their mistake and made payments over the year plus compounded interest

Also they neglect to give her the stated pay increase after 3 months as also listed in the contract