Bonus during notice period

[Serenamon]

I am planning to resign from my current employment - by contract I have a three months notice period. The company is due to pay bonuses at the end of this year. According to my contract only condition for bonuses to be paid is the company hitting its financial targets for the year, which I know they have already hit. Will I still be entitled to a bonus if working through my notice period when the bonuses will be due?

[atticus]

You need to ask someone to read your full contract and terms of the bonus scheme.

Is the word "discretion" or anything similar used?

Can you delay your resignation until after the bonus is in your bank?

[Serenamon]

Thanks for your reply. I checked my contract and employee handbook and there is no mention of bonuses in those documents. The bonus scheme T&Cs have actually been shared in a yearly financial overview document that has been presented and emailed to all employees. This is the full wording, which doesn't mention the word discretionary:
"Based on us hitting our targets, bonuses will be split into two categories with set numbers providing a more tangible incentive.
1. COMPANY-WIDE SALES TARGETS: • If ’base’ sales targets are hit, bonuses will be paid to everyone to the sum of 5% of their salary
2. INDIVIDUAL PERFORMANCE BASED: • Additionally, a bonus of a further 2.5% of salaries will be awarded discretionally on an individual basis, with key factors including hitting key personal milestones / objectives, contributing towards new business growth, or consistently going the extra mile.
Subject to a combination of the above, bonuses will be up to 7.5% of each employee’s salary. However, in order for the Individual Performance Based bonus (2.5%) to be considered, we must first hit the base company sales targets.
Note, bonuses paid will be subject to the usual income tax."

Waiting for the bonus to be paid will essentially delay my resignation of two months, until the end of the year - potentially adding to that the three months notice period would take me to March and I don't think I can stay with the company so long.

[atticus]

But it does say "discretionally" (sic).

[Serenamon]

yes but that applies to the additional 2.5% individual performance based one, which I would definitely not expect to receive if I resign. But am I correct assuming that I will still be entitled to the 5% which is based on the company hitting base sales targets and it's not discretionary?

[atticus]

I would still be concerned that the company will find a reason not to pay you a bonus. You need to decide which is more important to you: starting a new job as quickly as possible or being paid this bonus.

Do you know whether the company is on target to hit base sales targets?

[Serenamon]

Yes the company has already hit its base sales target at the end of Q3 so the payment of the 5% bonuses has already been announced to the employees. What could be a valid reason for the company not to pay it if it's not discretionary and the target has already been hit?

[atticus]

A decision not to pay bonuses to staff who have given notice to terminate their employment. Sheer bloody-mindedness. Are you prepared to take your chances suing for the money?