Resigning and bonus payments
Discussion
Guys and gals. I'm after a little advice on what i should do.
A couple of months ago I resigned from my position in a company where I have worked for 4 and a half years.
To give you a little background, the London office is pretty much built on a contract that I turned around when I started. My bosses words, not mine. So fast forward to now, I resigned and as per my contract said i was willing to work my three month notice period. However, my boss said he'd want me out sooner rather then later, and we agreed on today being my last day. On discussing this I checked if I was going to be paid until the end of my contract. Basically I have a month off to sort my move abroad. Between my resignation and now, i was told i was still to recieve my end of year bonus, as it was a reflection of my work throughout the year.
However during my exit interview, my boss has told me that he's going to pay me until the end of my contract as my bonus, including my 'two days holiday'!
Now I work in a small industry and our paths might cross, but he's not important to my future career. So do I email him saying that I wish he'd just come clean and told me I wasn't getting a bonus as I'm leaving, but will still honour the rest of my contract? Or do i just let it lie?
Please excuse my spelling and capitals as I'm tapping this out on my phone!
A couple of months ago I resigned from my position in a company where I have worked for 4 and a half years.
To give you a little background, the London office is pretty much built on a contract that I turned around when I started. My bosses words, not mine. So fast forward to now, I resigned and as per my contract said i was willing to work my three month notice period. However, my boss said he'd want me out sooner rather then later, and we agreed on today being my last day. On discussing this I checked if I was going to be paid until the end of my contract. Basically I have a month off to sort my move abroad. Between my resignation and now, i was told i was still to recieve my end of year bonus, as it was a reflection of my work throughout the year.
However during my exit interview, my boss has told me that he's going to pay me until the end of my contract as my bonus, including my 'two days holiday'!
Now I work in a small industry and our paths might cross, but he's not important to my future career. So do I email him saying that I wish he'd just come clean and told me I wasn't getting a bonus as I'm leaving, but will still honour the rest of my contract? Or do i just let it lie?
Please excuse my spelling and capitals as I'm tapping this out on my phone!
Edited by theboyfold on Friday 12th December 09:07
Whilst there is a three month notice period, on acceptance of your resignation your employer does not have to ask you to work the rest of your notice. In fact, they could make that day your last day!
So, if you were paid for time you were not due to work then this would be above and over what you are 'due'. If nothing else, since you are not working this time.
How much does the amount you received in lieu of work you are not going to complete differ from what you would expect from your bonus?
So, if you were paid for time you were not due to work then this would be above and over what you are 'due'. If nothing else, since you are not working this time.
How much does the amount you received in lieu of work you are not going to complete differ from what you would expect from your bonus?
Thanks for the answer, I'm glad you could understand it, being a 'tad' drunk and using my phone to enter my post isn't the best way to get a message across!
The money for the time in lieu is about 3 times more then what I'd expect as a bonus (which is normally about 1% -1.5% of my annual pay). I think my main annoyance is that I've been told something different and my boss has tried to dress up what the money he'd promised me as a bonus. Instead of saying 'As you are leaving, there isn't going to be a bonus, but I'll pay you until the end of your contract'
So, is what you are saying, irrespective of what my contract says, if I resign, he can kick me out of the door there and then and not pay me for another days work?
The money for the time in lieu is about 3 times more then what I'd expect as a bonus (which is normally about 1% -1.5% of my annual pay). I think my main annoyance is that I've been told something different and my boss has tried to dress up what the money he'd promised me as a bonus. Instead of saying 'As you are leaving, there isn't going to be a bonus, but I'll pay you until the end of your contract'
So, is what you are saying, irrespective of what my contract says, if I resign, he can kick me out of the door there and then and not pay me for another days work?
theboyfold said:
So, is what you are saying, irrespective of what my contract says, if I resign, he can kick me out of the door there and then and not pay me for another days work?
No, if your contract states that if you resign then both parties much honour the notice period, then both parties must do so.Normally if you resign you are obliged to work your notice period, unless your employer does not want you to - in which case you can hardly be expected to be paid for work you are not going to do.
UpTheIron said:
theboyfold said:
So, is what you are saying, irrespective of what my contract says, if I resign, he can kick me out of the door there and then and not pay me for another days work?
No, if your contract states that if you resign then both parties much honour the notice period, then both parties must do so.Normally if you resign you are obliged to work your notice period, unless your employer does not want you to - in which case you can hardly be expected to be paid for work you are not going to do.
So in my case, I legally can't expect him to pay me for the final month of my notice period because he's not asked me to work it. So by offering to pay me for the last month as my 'bonus' I am in a good position. Irrespective of the fact he previously stated that he would pay me until the end of my contract (and not as a bonus payment).
Basically I'm trying to understand if this is an actual bonus or he is just fulfilling his legal requirement.
Garden Leave.
If you are willing to work your notice but your employer doesn't want you to, they *must* pay you *and* give you all the benefits that came as part of your package eg company car. Bonuses are slightly different as most companies will put a clause in your contract saying that bonuses are discretionary.
If you are willing to work your notice but your employer doesn't want you to, they *must* pay you *and* give you all the benefits that came as part of your package eg company car. Bonuses are slightly different as most companies will put a clause in your contract saying that bonuses are discretionary.
VX Foxy said:
Garden Leave.
If you are willing to work your notice but your employer doesn't want you to, they *must* pay you *and* give you all the benefits that came as part of your package eg company car. Bonuses are slightly different as most companies will put a clause in your contract saying that bonuses are discretionary.
That was my reading too, and the practice I have seen in that if they choose to ask you not to work your notice they pay to the end of the notice period. Not sure about any bonus. Do they norammally do that pro-rate or do you have to do the full period? Both must be in the employmnet contract?If you are willing to work your notice but your employer doesn't want you to, they *must* pay you *and* give you all the benefits that came as part of your package eg company car. Bonuses are slightly different as most companies will put a clause in your contract saying that bonuses are discretionary.
VX Foxy said:
Garden Leave.
If you are willing to work your notice but your employer doesn't want you to, they *must* pay you *and* give you all the benefits that came as part of your package eg company car. Bonuses are slightly different as most companies will put a clause in your contract saying that bonuses are discretionary.
That is my understanding. He has to pay your notice, but the bonus is discretionary. If you are willing to work your notice but your employer doesn't want you to, they *must* pay you *and* give you all the benefits that came as part of your package eg company car. Bonuses are slightly different as most companies will put a clause in your contract saying that bonuses are discretionary.
I waited a whole 4 weeks before resigning my last job, until the bonus was in the bank but then had to negotiate hard on bringing the 3 months notice down to 5 weeks (Old boss was being pissy to say the least) as I'd told the new company that I'd resigned 2 weeks before I did. Worked okay in the end.
As the bonus was descretionary I knew I'd loose £600 to £1200 if I resigneed even one day before the BACS transfer. It was great cause I was able to say "Well I was uming and ahing, but this piss take has given me my answer, so I've decided to leave" to his boss.
As the bonus was descretionary I knew I'd loose £600 to £1200 if I resigneed even one day before the BACS transfer. It was great cause I was able to say "Well I was uming and ahing, but this piss take has given me my answer, so I've decided to leave" to his boss.
Cheers for the advice, as it stands (and where I think I'm going to leave it) is that my boss is paying me for the rest of my notice period as my bonus. So in essence I'm loosing my actual bonus, it's now just the way he's wording it that's annoying me. Personally I wish he had to courage to say 'you're not getting a bonus as you are leaving' and still pay me, and not just dress it all up.
careful.
Bonuses have to be paid if you are still working for the company when they are due to be paid. Its a complex issue at times, but there is legal precedent that withholding quantifiable bonuses because you have handed in your notice is tantamount to theft. However, if you hand your notice in knowing that your LDOW is before the bonus is due to be paid, then thats too bad and entirely your fault if you miss out on it.
If you are both in agreement, you can stop working earlier and just walk away, but if you want to work out your notice and they don't want you in the office (common in sales etc...) then they can effectively buy you out of your contract, which is what is happening here I think. Gives you time at home before you start your next job, or ou cna start with them earlier and pocket the cash.
HTH
Bonuses have to be paid if you are still working for the company when they are due to be paid. Its a complex issue at times, but there is legal precedent that withholding quantifiable bonuses because you have handed in your notice is tantamount to theft. However, if you hand your notice in knowing that your LDOW is before the bonus is due to be paid, then thats too bad and entirely your fault if you miss out on it.
If you are both in agreement, you can stop working earlier and just walk away, but if you want to work out your notice and they don't want you in the office (common in sales etc...) then they can effectively buy you out of your contract, which is what is happening here I think. Gives you time at home before you start your next job, or ou cna start with them earlier and pocket the cash.
HTH
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