Old Employer Owes Bonus Payments

wardides

Hi all. I was wondering if I could get some advice on a matter which involves my old employer.

I used to work for a consultancy based company (small company, started and ran by one individual for over 6 years). In April it was announced that there would be a new "incentive" based bonus, payable every quarter. The bonus due was dependent on agreed targets - at levels of 7.5%, 15% & 20% of quarterly salary. These targets were specific to each employee and discussed with owner before we signed a sheet containing the targets. At the time of discussion there was myself and 2 other employees who were involved (3 other employees in the business excluded - one was HR, one recently joined & one worked 2 days a week).

So April & May passed and we were striving to reach our targets. Was discussed that I (also applicable for other 2 employees) had at least reached the minimum target set for us (7.5%). However the most senior employee then decided to move on, leaving the owner to make the decision to cease trading at the end of June.

Should stress the business was quite a close knit business and the owner was very hands on & close to myself and other members of staff. Throughout the final month of trading we were informed to keep acting as normal as to ensure clients were not effected. Myself & the other employee due incentives, were sorted with jobs (both in clients we had previously worked for a couple of days a week). As previously, the owner arranged interviews for us etc, so all was ok.

However, at the end of June we were just paid our normal monthly salary, no bonus payments included. We asked and the owner agreed that we were due incentives (on record in email) but unfortunately we would have to wait until all monies in was accounted for to see what was left to be distributed.

As time has gone on, every time we try to contact the owner we are fobbed off with the same excuse about waiting on money in. It's been two months now and still nothing.

Another couple of things to note are that there was a non executive ceo involved in the business who had either given a business loan or bought in to the company and was paid in full. Also the owner (who lives in the UK), has since gone on to open up another consultancy firm, however this time just working on themselves with no employees.

Do we have a legal argument here to be paid what was agreed? Whilst we don't have a contract stipulating terms, myself and 3 other employees would have witnessed these being signed and returned to the owner, as well as emails in which the owner acknowledges the fact we are owed bonus payments.

Apologies for the long winded email or if this is in the wrong place, then mods feel free to move.

davo10

wardides wrote: »

Hi all. I was wondering if I could get some advice on a matter which involves my old employer.

I used to work for a consultancy based company (small company, started and ran by one individual for over 6 years). In April it was announced that there would be a new "incentive" based bonus, payable every quarter. The bonus due was dependent on agreed targets - at levels of 7.5%, 15% & 20% of quarterly salary. These targets were specific to each employee and discussed with owner before we signed a sheet containing the targets. At the time of discussion there was myself and 2 other employees who were involved (3 other employees in the business excluded - one was HR, one recently joined & one worked 2 days a week).

So April & May passed and we were striving to reach our targets. Was discussed that I (also applicable for other 2 employees) had at least reached the minimum target set for us (7.5%). However the most senior employee then decided to move on, leaving the owner to make the decision to cease trading at the end of June.

Should stress the business was quite a close knit business and the owner was very hands on & close to myself and other members of staff. Throughout the final month of trading we were informed to keep acting as normal as to ensure clients were not effected. Myself & the other employee due incentives, were sorted with jobs (both in clients we had previously worked for a couple of days a week). As previously, the owner arranged interviews for us etc, so all was ok.

However, at the end of June we were just paid our normal monthly salary, no bonus payments included. We asked and the owner agreed that we were due incentives (on record in email) but unfortunately we would have to wait until all monies in was accounted for to see what was left to be distributed.

As time has gone on, every time we try to contact the owner we are fobbed off with the same excuse about waiting on money in. It's been two months now and still nothing.

Another couple of things to note are that there was a non executive ceo involved in the business who had either given a business loan or bought in to the company and was paid in full. Also the owner (who lives in the UK), has since gone on to open up another consultancy firm, however this time just working on themselves with no employees.

Do we have a legal argument here to be paid what was agreed? Whilst we don't have a contract stipulating terms, myself and 3 other employees would have witnessed these being signed and returned to the owner, as well as emails in which the owner acknowledges the fact we are owed bonus payments.

Apologies for the long winded email or if this is in the wrong place, then mods feel free to move.

If the company has ceased trading, you are an unsecured creditor. Unless you are owed tens of thousands you will be wasting your money suing for what you are owed, particularly if the owner is based and operating in the UK. Right it off, it sounds like he did everything he could to ensure you had new jobs to go to.