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6 months ago the company I work for were bought out and my role was identified as a key role to migrating the two companies IT systems. Anxious to retain my services they offered me a 12 month contract and a 10% bonus if I remain in place for a full 12 months (IT contract in the UK). They even offered me a 3 month notice period, unusual for a contractor.
This week the new company has decided to cull all contractors, activating my 3 month notice period and leaving me 3 months short of completing the performance bonus (11th October).
I have questioned what they will do concerning the performance bonus, they replied "as a contractor you are not entitled to this payment". Of course I was a contractor when the contract was signed.
Wording of the letter signed by myself and the HR Director (now departed):
Performance Bonus Plan
I am writing to inform you that your role has been identified as being
key to these proceedings and as an incentive plan to retain key employees,
you have been selected to receive a Performance Bonus Payment.
Your participation and eligibility for the Performance Bonus Payment is
subject to the following:
1. Your acceptance of the terms of this letter.
2. That you remain engaged with **** within your existing contract
which is not expected to end before the 11th October 2019
3. You must have remained in good standing with **** and have not
received any written warnings and/or disciplinary.
4. Signing and returning the attached copy of this letter agreeing to the
terms.
Under the Performance Bonus Payment you will be entitled to a direct
payment of up to £ 12,000.00 which is approximately equal to 10 %, of your
current daily rate over a period of 253 days (“the Bonus”) to be paid as a oneoff
lump sum amount.
The Bonus payment will be paid directly to you at the end of October 2019
and you will be responsible for any necessary deductions of tax and national
insurance.
I am suspecting this signed letter is now completely worthless but I'd appreciate any advice on my options here.
Many thanks!
This week the new company has decided to cull all contractors, activating my 3 month notice period and leaving me 3 months short of completing the performance bonus (11th October).
I have questioned what they will do concerning the performance bonus, they replied "as a contractor you are not entitled to this payment". Of course I was a contractor when the contract was signed.
Wording of the letter signed by myself and the HR Director (now departed):
Performance Bonus Plan
I am writing to inform you that your role has been identified as being
key to these proceedings and as an incentive plan to retain key employees,
you have been selected to receive a Performance Bonus Payment.
Your participation and eligibility for the Performance Bonus Payment is
subject to the following:
1. Your acceptance of the terms of this letter.
2. That you remain engaged with **** within your existing contract
which is not expected to end before the 11th October 2019
3. You must have remained in good standing with **** and have not
received any written warnings and/or disciplinary.
4. Signing and returning the attached copy of this letter agreeing to the
terms.
Under the Performance Bonus Payment you will be entitled to a direct
payment of up to £ 12,000.00 which is approximately equal to 10 %, of your
current daily rate over a period of 253 days (“the Bonus”) to be paid as a oneoff
lump sum amount.
The Bonus payment will be paid directly to you at the end of October 2019
and you will be responsible for any necessary deductions of tax and national
insurance.
I am suspecting this signed letter is now completely worthless but I'd appreciate any advice on my options here.
Many thanks!
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