Pay rise letter - but HR also want to amend bonus conditions (reduce!). Allowed?

whiskeyman

I've finally been awarded a long awaited pay rise, however in the letter from HR they have detailed an amendment in the company bonus plan.
I've been in the company a while, and my original contract states I can earn up to a 10% bonus, depending on personal and company performance.

The company has since been taken over by a foreign big company, and this pay rise letter has an amendment to say the max bonus I can earn is now 5% (as per the big company standards).

The difference will pretty much half the pay rise for my annual income.

Is there anyway I can tell HR that I refuse the bonus amendment?
I know there are other staff who are there the same length of time as me, and their 10% bonus isnt changing.

any advice is most grateful.

thanks

markpb

As I see it, you have three options:

1. Accept the new contract with the pay rise and reduced bonus

2. Negotiate a new contract witht the company which includes a pay rise and the same bonus.

3. Leave.

The third option might have to be your fallback if you don't get option 2 and aren't willing to accept option 1.

Manach

This is not legal advice and I'm only vaguely aware of the effects, but based on the OP's situtation my understanding is that when a company is taken over by another the EU's Transfer of undertakings is in effect.
"
The Directive stipulates that any employee's contract of employment will be transferred automatically on the same terms as before in the event of a transfer of the undertaking. This means that if an employer changes control of the business, the new employer cannot reduce the employees' terms and conditions, unless the Directive's exception criteria are met. This is that there must be a good economic, technical or organisational reason for the change.
" - http://en.wikipedia.org/wiki/Transfers_of_Undertakings_Directive

wonski

whiskeyman wrote: »

I've finally been awarded a long awaited pay rise, however in the letter from HR they have detailed an amendment in the company bonus plan.
I've been in the company a while, and my original contract states I can earn up to a 10% bonus, depending on personal and company performance.

The company has since been taken over by a foreign big company, and this pay rise letter has an amendment to say the max bonus I can earn is now 5% (as per the big company standards).

The difference will pretty much half the pay rise for my annual income.

Is there anyway I can tell HR that I refuse the bonus amendment?
I know there are other staff who are there the same length of time as me, and their 10% bonus isnt changing.

any advice is most grateful.

thanks

Look at it this way:

Bonus is "up to 10%" and the pay rise is a specific amount of money.

2 or 3 years ago a company i work for decided not to give any pay rise and offered bonuses instead. If you think short term this is great but in a long term (if you are thinking of staying with the company for few more years) this isn't so.

Pay rise cannot be taken away from you so easily (unless you agree) and bonus can be cut in half easily.

You have to do your math first and decide what is best for you.

I do agree that 10% sounds nice and giving it away is not easy. All depends on what the pay rise is. Remember that pay rise is permanent while the bonus structure might change in the future.

P_1

How regularly do you get the bonuses? No sense in splitting hairs over something that only happens once in a blue moon.

CIARAN_BOYLE

whiskeyman wrote: »

Is there anyway I can tell HR that I refuse the bonus amendment?

Sure. Turn down tbe pay rise.

whiskeyman

P_1 wrote: »

How regularly do you get the bonuses? No sense in splitting hairs over something that only happens once in a blue moon.

Bonus is every year, and without blowing my own trumpet (paarppp!), I've been getting v good marks each year for personal effort so it's been up near 10% each time.

My main greivance is that they're forcing this on me now while other staff are still on the 10%.
If it was across the board, that'd be fine, but it seems somewhat sneaky.
I also think this was a move from HR and my bosses dont realise that the pay rise is a lot smaller now in real terms.

Boskowski

The rise warrants a contract amendment and they're trying to sneak this one into the amendment? Is that it?

If that's it then talk to your manager about it. If he/she can't or won't do anything about it it's all about how good your hand is.
Are you in a position to threaten with leaving? Are there jobs around for what you do?

BizzyC

So if you say yes, it's a pay rise and at most a 5% bonus.

If you say no, no pay rise, and they can still choose to pay you a 5% bonus.

Mr. Loverman

Firstly, thanks for giving us lots of details. It helps us give you proper advice instead of guessing.

This all seems very sneaky to me. I am sure your manager didn't support it, but I have no doubt she was aware of this. Unless the HR are total ****s, which they may be.

I think the first step is to have a reasonable conversation with your manager. Find out what's really happening.

Personally, I hate this kind of thing. It tells me the people in charge, or HR, are a bit nasty. I'd probably start looking for a new job. If I remember correctly, you're an IT guy, right?

whiskeyman

thanks for the helpful feedback.
Turns out this is HR acting the boll*x, but my managers appear powerless in trying to stop it.
I love my job, but looks like I'll need to go elsewhere.
I've lost all trust in this place, despite them saying my career was mapped out and 'they love me'.
Yeah right... there's a 'brain drain' happening here at the moment, and I'm going to be just another one out the door soon I hope to somewhere I'm valued better.
Yep - work in IT, and things are looking good out there in my area.

/rant!

holystungun9

You seem pretty sharp so you'll make the right decisions whatever way this thing pans out.