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Bonus being reduced

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  • Bonus being reduced

    Hi All - We have a discretionary bonus scheme with a scoring matrix that indicates our achievements and the corresponding quarterly bonus we can expect. However, in the last quarter, we all had our scores arbitrarily reduce and the bonus amounts were lowered as a result. It was explaind that this was due to available funds (the business not hitting sales targets, etc.), despite there being no performance shortfalls. Does we have any recourse available to them in this situation? It seems unfair at best.
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  • #2
    I doubt you have any recourse. The scheme is discretionary, all those in your bonus scheme have had their bonus reduced (not you personally being discriminated agianst), and your employer has given you a reasonable explanation (that the company is not doing well financially and cannot afford it).

    That's how discretionary bonus schemes work.

    Discretionary bonus schemes I have been in always say somewhere in their rules that payment of bonus depends not only on the employee meeting their personal target but are also subject to the company itself meeting its overall financial objectives. Does yours say something like that?
    All opinions expressed are based on my personal experience. I am not a lawyer and do not hold any legal qualifications.

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