Employment contract offer letter
Discussion
Does the offer letter that accompanies an employment contract have any legal standing? My contract sets out salary etc., but the cover letter also mentions salary and adds "You will also be entitled to a bonus to a maximum potential of 10% of salary based on a combination of individual and company performance". I've not had a bonus for a few years (been here six years) and wonder if I have a case to argue when they tell me yet again there's no payrise this year.
The excerpts you put up are sufficiently vague to entitle you to nothing in terms of guaranteed bonus payments. The text doesn't define the parameters, threshold or mechanism by which any bonus would be payable. Effectively it says you are entitled to a bonus of up to 10% but how we as a company calculate this is entirely up to us.
Now, things may be slightly different if the company has used particular calculations in the past.
Also, unless there is a contractual salary increase then there is no entitlement to one.
Now, things may be slightly different if the company has used particular calculations in the past.
Also, unless there is a contractual salary increase then there is no entitlement to one.
Thanks for your responses. Here's as much info as I think is available...
The offer letter begins...
Further to your recent interview, I am pleased to offer you the position xxx within xxx, which is based at our offices at Luton, and reporting to the xxx. I would be grateful if you could confirm your availability to commence this position.
You will receive a salary of £xxx p.a. which will next be reviewed in February 2003. You will also be entitled to a bonus to a maximum potential of 10% of salary based on a combination of individual and company performance.
You will also be entitled to the following benefits:
... It then lists the various health schemes etc., and ends..
I attach two copies of your terms and conditions and the non-compete & non-disclosure document. Would you please sign and return one copy of each to me indicating your acceptance of this offer.
The actual contract starts...
TERMS AND CONDITIONS OF EMPLOYMENT
xxx
1. TERMS OF APPOINTMENT
Your title will be xxx and you will report to the xxx. You may be required to carry out additional or other duties as necessary to meet the needs of the business from time to time. Your position will be effective from - TBC.
Your normal place of work will be xxx or such other office within sites based in the UK as the Company may require. You will not be required to work outside the UK on a permanent basis.
You will be required to work a 35 hour working week running Monday to Friday with a one hour lunch break, although you may be expected to work additional hours, where necessary, for the proper performance of your duties. No additional payments will be made in respect of any additional hours worked. Your departmental head will advise you what specific hours you will work, further details are in the Handbook.
It is a condition of employment that you agree to be bound by any Company rules, regulations and procedures as may be introduced by the Company and notified to you from time to time.
2. SALARY
The basic rate of pay will be £xxx per annum with an annual review in or around February each year. You will be paid monthly in arrears at the end of the month directly into your bank account net of Tax and National Insurance contributions. The Company shall be entitled to deduct from your salary any other monies which you owe it.
From what you've suggested so far, I don't believe there's anything else here that adds any hope! Oddly enough, another guy who started just before me had the bonus clause in his contract rather than just in the offer letter. He's going to confront management, which is why I was motivated to check my wording! What do you reckon to my chances?
The offer letter begins...
Further to your recent interview, I am pleased to offer you the position xxx within xxx, which is based at our offices at Luton, and reporting to the xxx. I would be grateful if you could confirm your availability to commence this position.
You will receive a salary of £xxx p.a. which will next be reviewed in February 2003. You will also be entitled to a bonus to a maximum potential of 10% of salary based on a combination of individual and company performance.
You will also be entitled to the following benefits:
... It then lists the various health schemes etc., and ends..
I attach two copies of your terms and conditions and the non-compete & non-disclosure document. Would you please sign and return one copy of each to me indicating your acceptance of this offer.
The actual contract starts...
TERMS AND CONDITIONS OF EMPLOYMENT
xxx
1. TERMS OF APPOINTMENT
Your title will be xxx and you will report to the xxx. You may be required to carry out additional or other duties as necessary to meet the needs of the business from time to time. Your position will be effective from - TBC.
Your normal place of work will be xxx or such other office within sites based in the UK as the Company may require. You will not be required to work outside the UK on a permanent basis.
You will be required to work a 35 hour working week running Monday to Friday with a one hour lunch break, although you may be expected to work additional hours, where necessary, for the proper performance of your duties. No additional payments will be made in respect of any additional hours worked. Your departmental head will advise you what specific hours you will work, further details are in the Handbook.
It is a condition of employment that you agree to be bound by any Company rules, regulations and procedures as may be introduced by the Company and notified to you from time to time.
2. SALARY
The basic rate of pay will be £xxx per annum with an annual review in or around February each year. You will be paid monthly in arrears at the end of the month directly into your bank account net of Tax and National Insurance contributions. The Company shall be entitled to deduct from your salary any other monies which you owe it.
From what you've suggested so far, I don't believe there's anything else here that adds any hope! Oddly enough, another guy who started just before me had the bonus clause in his contract rather than just in the offer letter. He's going to confront management, which is why I was motivated to check my wording! What do you reckon to my chances?
miniman said:
your letter said:
to a maximum potential of 10% of salary
So the bonus can range from zero to 10% of your salary. What objectives / targets have been set in relation to the bonus? They changed the rules and schemes each year, and a couple of years ago seemed to abandon bonuses altogether (except for directors of course!). Management aren't the greatest at keeping staff happy at my place!
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