Withholding annual bonus

splashthecash

I don’t see anything specifically stated in the employee handbook but is it legal to withhold an awarded annual bonus of an employee for the work/performance of the previous year if the employee has handed in their notice and will still be officially employed at the time when the bonus would be paid out?

whippet

I don’t know the legalities .. but in my place bonuses will not be paid to people who have left or who have handed in their notice

It’s usually based on performance and handing in one’s notice will usually negate any positive performance

From the employers perspective it would be madness to pay it .. from the eomployee’s perspective it was really naive to hand in notice before getting the payment

splashthecash

whippet wrote: »

I don’t know the legalities .. but in my place bonuses will not be paid to people who have left or who have handed in their notice

It’s usually based on performance and handing in one’s notice will usually negate any positive performance

From the employers perspective it would be madness to pay it .. from the eomployee’s perspective it was really naive to hand in notice before getting the payment

Thanks, no notice has been handed in as of yet - just wanted to get an idea of typical scenarios

Pixie8

Check your employment contract. Most will state an annual bonus is 'discretionary' i.e not guaranteed so employer wouldn't be obligated to pay if you handed in your notice

whippet

If you are due a bonus don’t hand your notice in until you have been paid.

It’s a ****ty thing to do but that’s business