Bonus awards

[Fidstix]

Hi all, hope I can get some sensible and accurate guidance here

I work for a well known national company. Due to decreased profits the company restructured at the back end of last year and the new roles went live in April. Fortunately for me I was offered a role with no reduction in salary and received a letter to confirm this

the company rewards great performance via a bonus scheme and this is the issue I need help with. For Q1 (old role) I achieved maximum bonus possible and was awarded fairly

for Q2 I also achieved maximum bonus but was shocked to see that the paid bonus was approx 40% less than Q1. Changes to the bonus structure and awards were NEVER communicated me and to find out via my payslip is very poor indeed.

Assuming the reward was changed from Q2 (April) to have had no comms on this at the end of August seems unfair and not transparent


Further to this I learnt last week (via a colleague on another branch) that the bonus criteria has changed from Q3. The document is dated 1st Aug yet took effect from July 1st

I accept a bonus is exactly that and should not be assumed, however the lack of comms is shocking…….but is it legal to do this without any consultation or briefing?

thanks In advance

[atticus]

You need to examine the terms of the bonus scheme. The key question for you is whether it is contractual. The greater likelihood is that it is not.

Remember that you are employed by a company that is in financial difficulty. You may be upset at the lack of communication, but were your expectations naïve?

[Fidstix]

Hi Atticus

thanks for taking the time to reply, it is greatly appreciated. As far as I am aware the company is not in financial difficulty, but made the decision to remove some layers of middle management to maintain and improve profits

I have no issue at all with a bonus scheme changing and also appreciate that the business can withdraw or change it. My issue is that the T&Cs for it have obviously changed without any communication at all

its very disheartening to work so hard, achieve so much (based on bonus criteria) to learn AFTER the event that the rewards mechanism has been changed.

[ULA]

I appreciate your frustration.

Even if the bonus scheme is not contractual, is there a policy or document that sets details of the scheme including, criteria on how performance is measured for the bonus level paid? If so it may be worth seeing if there is anything about communication of changes to the scheme. If not, then assuming it is not contractual, and there is nothing in any scheme documentation, then really it is good practice that says reasonable notice should be given but nothing I am aware of in law.