Resigning on same day bonus issued

[Gregmitchell]

As title says, if I got informed of my annual bonus and handed my notice in in the same day could the retract the bonus? It's not a contractual payment, but other managers will also be receiving theirs. Also, if they did retract it would I be able to claim constructive dismissal? I'm on 3 months notice if that's of any relevance.

Any thoughts?

[bompey]

Wait until it's in your account. There's often small print you need to be employed and not in a notice period to receive it. Not worth the risk for a few weeks.

[Gregmitchell]

bompey said:

Wait until it's in your account. There's often small print you need to be employed and not in a notice period to receive it. Not worth the risk for a few weeks.

There's no small print, it's not even in my contract, just a letter saying £XXXXX bonus for you hard work blah blah blah.

Sorry also to note, I need to hand my notice in to start my new job on time, I couldn't wait another two weeks.

[RammyMP]

They can retract it if it's not in you contract. At our place they announce the bonus in July but don't pay it until November.

[elanfan]

If it's a larger company which it sounds like it is then payroll will have processed the payment X days before you actually get it. I'd have thought it would be very difficult to reverse this once the run has been done. It's likely therefore that you might get away with what you had planned dependant on timing.

Alternatives include negotiating to leave earlier than your notice period or writing out your notice with the dates on but not actually putting it on the boss' desk until you're in the clear. Then all you have to do is maintain he's had the letter for X days! Guess it couldn't be proved either way???

[Countdown]

elanfan said:

If it's a larger company which it sounds like it is then payroll will have processed the payment X days before you actually get it. I'd have thought it would be very difficult to reverse this once the run has been done. It's likely therefore that you might get away with what you had planned dependant on timing.

?

The payroll run happens 2 days before the pay hits your account so theoretically a person's salary can be amended/cancelled any time up until then. Payroll will be reluctant to amend if it's a trifling reason but the CAN do it if they want to.

[ozzuk]

If you want to know for sure ask your HR department. Generally, if the bonus isn't contractual then its discretionary so they can withdraw it at any time. I know in my company we get paid bonus in March for the previous year - and if you hand in notice at any time before march you lose bonus.

Constructive dismissal? For what? You are choosing to leave for a new job, not because they might not pay you bonus.

[elanfan]

Countdown said:

elanfan said:

If it's a larger company which it sounds like it is then payroll will have processed the payment X days before you actually get it. I'd have thought it would be very difficult to reverse this once the run has been done. It's likely therefore that you might get away with what you had planned dependant on timing.

?

The payroll run happens 2 days before the pay hits your account so theoretically a person's salary can be amended/cancelled any time up until then. Payroll will be reluctant to amend if it's a trifling reason but the CAN do it if they want to.

Agreed that's the instruction sent to the bank but the payroll department will have a cut off date after which it would be difficult to make last minute changes. For instance my child works for a supermarket, any overtime, additional or un worked shifts do not get taken account of for at least a week before the run. There has to be a cut off date before the instruction to the bank.

[EJH]

Read your contract of employment and bonus scheme rules.

I was in a similar situation a few years ago and my contract said (words to the effect that) I had to be an employee of the company and not under notice at the time of payment (not the time I was informed of payment).

As such, I erred on the side of caution (when is one considered to have given notice / when is the payment made to one's account - you HAVE to spit hairs in the consideration of this) and resigned the working day after payment had been made.

[Gregmitchell]

ozzuk said:

If you want to know for sure ask your HR department. Generally, if the bonus isn't contractual then its discretionary so they can withdraw it at any time. I know in my company we get paid bonus in March for the previous year - and if you hand in notice at any time before march you lose bonus.

Constructive dismissal? For what? You are choosing to leave for a new job, not because they might not pay you bonus.

I suggested constructive because I'm an accountant and I accrued everyone's bonuses in December, and excluding me and not any other managers without fair reason I would consider constructive dismissal?

[CaptainSlow]

Gregmitchell said:

I suggested constructive because I'm an accountant and I accrued everyone's bonuses in December, and excluding me and not any other managers without fair reason I would consider constructive dismissal?

So you were told not to accrue your bonus?

[Gregmitchell]

CaptainSlow said:

So you were told not to accrue your bonus?

No I accrued mine too along with everyone else's.

[CaptainSlow]

Gregmitchell said:

CaptainSlow said:

So you were told not to accrue your bonus?

No I accrued mine too along with everyone else's.

Not sure where you're coming from then. If you won't get the bonus because you've resigned how can that be constructive dismissal?

As others have said, read your contract, if it isn't in there you need to get clarification from the company.

[omniflow]

A few years ago a woman at work resigned the day after bonuses were announced. She didn't get the money.

[Hackney]

What's more important to you, starting the new job on time or the bonus payment?
If it's the bonus, wait until it's paid.


Trying to claim constructive dismissal over something that's not even in a contract, and you've resigned anyway is ridiculous.

[GT03ROB]

If it's not contractual & you've resigned expect to not receive it.

[ocrx8]

Have you explained this to your new employer? Perhaps they could build it intol their offer i.e. you receive the bonus forfeited from last company after X months at new company.

[Robertj21a]

elanfan said:

Agreed that's the instruction sent to the bank but the payroll department will have a cut off date after which it would be difficult to make last minute changes. For instance my child works for a supermarket, any overtime, additional or un worked shifts do not get taken account of for at least a week before the run. There has to be a cut off date before the instruction to the bank.

Yes, but the company can also put through a recall of any specific amount.

[Gregmitchell]

Hackney said:

What's more important to you, starting the new job on time or the bonus payment?
If it's the bonus, wait until it's paid.


Trying to claim constructive dismissal over something that's not even in a contract, and you've resigned anyway is ridiculous.

Because it's based on prior year performance, and if I'm discriminated against I have a recourse against my employer.

[GT03ROB]

Gregmitchell said:

Because it's based on prior year performance, and if I'm discriminated against I have a recourse against my employer.

But if it's not contractual, it will be discretional surely, so how would you have recourse?