Unpaid contractual "guarenteed bonus" by employer

[Louby Lou]

Hi,

This is my first post as I'm seeking as much advice as possible about my husband's current situation. His contract states that part of his salary will be paid in a lump sum as a "guaranteed" bonus together with his salary at the end of March 2014. His employer asked him if he would agree to not take this bonus as the office he took over a year ago has not made much money in the last year. His guaranteed bonus has nothing to do with his performance and in fact he took over an office on it's knees and has made big strides to build thing back up. I understand that there is no question that he is not entitled to the money and don't have a question regarding that. What we fear is that when he writes a letter putting it to the company that they have to abide by their contractual obligation and pay the money, that they could quite easily turn round and say goodbye. He has only been there a year and he has no rights in terms of redundancy/sacking etc.


The main point we want to know is, if they sack him after he asks them to pay up, does he have any comeback legally. Or, if he resigns because he can no longer work for a company that will not pay him what he is due, does he have any legal comeback.

The main point really is what is the best procedure and how should he structure his informing them by letter/resigning etc.

He has been 100% committed to the company for the past year and put in many long hours and has been kicked in the teeth that they have done this to him. He is a professional person, don't want to state the field, and has never encountered a situation like this in over 30 years.

Any advice greatly received as not sure which way to turn.

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Re: Unpaid contractual "guarenteed bonus" by employer

I would be inclined to include that as he has managed to improve the office when it was on its knees is an incentive to ensure the bonus is paid. I am sure they value his skills and would not want to lose him. If it is agreed contractually, they cannot simply sack him, the breach of contract is on their part not his. If they wanted to terminate his employment, even though he has only worked there a year they would still have to follow procedures.

Would an alternative solution be for him to suggest he receives a reduced bonus with the remainder deferred to a later date specifically agreed in writing so there would be no argument about it later.