Bonus payment.

[Davea]

Hi all.

in the past I've used this site for info but have only joined as a member today. Hopefully somebody will be able to help me.

Where I work they pay out a bonus at Christmas which is described as a "discretionary" bonus. It's paid out to all workers and while not being a huge sum it is useful this time of year.
This year I haven't been paid it. I had an accident at work about three years ago and I claimed against the company for my injuries. Part of the injuries I suffered was a broken tooth which I have ongoing issues and expenses with, that was the reason I put the claim in.
I have had the bonus paid to me since the claim but this year they have decided not to pay me it. When I queried why I hadn't been paid the bonus I was told by a senior manager that my injury claim is the reason they aren't paying it. He emphasised that it was a discretionary bonus and they can withhold it from individuals if they want to. There are no issues with my work, etc.
So what I want to know is are they within their rights to do this?

Thanks for any help or advice. Dave.

[Amethyst]

Re: Bonus payment.

Have they paid it to everyone else?

[Davea]

Re: Bonus payment.

Have they paid it to everyone else?

Yes, apart from two others who have current and ongoing injury claims against the company.

[Amethyst]

Re: Bonus payment.

Sounds like they've come up with a new policy, this year as they previously continued paying you the bonus.

As they had paid you it every year up until now it could be perceived as contractual by implication now. Is it enough of an issue to make a fuss over ? ( ie is your job safe and is the amount worth it ?)

This from Slater & Gordon

Discretionary bonuses
In most bonus schemes, employers give themselves discretion
to decide who will be eligible for a bonus, the amount payable
and even whether to pay any bonuses at all in a particular
year. You may think that if your contract builds in an
element of discretion, you cannot challenge your employer’s
decision, but in practice, there is no such thing in law as a
purely ‘discretionary’ bonus. It is an implied term of any
bonus scheme that you are entitled to expect your
employer’s discretion to be exercised in a way which is not
irrational or perverse. The exercise of discretion involves two
distinct decisions by the employer; whether to award a bonus
and if so, how much. Both decisions are subject to the implied
term. The Courts will strive to give practical effect to the
reality of the bargain struck between the employer and
employee in respect of bonuses.

Employers will also usually give themselves discretion to
amend the terms of the bonus scheme from time to time. If
your employer has this discretion, the discretion should be
used properly.

[Davea]

Re: Bonus payment.

I've had a dig around the web for info and as it says in your quote the "discretion should be used properly". Or as another site put it
"an employer must exercise its discretion in good faith and on reasonable grounds."
They have done this out of spite, as a punishment.and as a warning to others who might instigate claims against them. Would those reasons for stopping my bonus be classed as good faith and reasonable grounds?
The other two who have also had it stopped went above the manager I saw. They went to see the CEO of the branch of this worldwide company we work for and he went off on a bit of a rant.
He told them that as long as he is with the company they will never be paid bonus again, never get any overtime again and there would be no further pay rises for them. I suppose that applies to me as well.

[teaboy2]

Re: Bonus payment.

The term discretion is not to who gets bonus and who doesn't (unless its based on reaching targets or on attendance percentage) but whether any bonus is paid at all or not. If you qualified for the bonus then they can not simply refuse to pay you it, but still pay everyone else, as that would be victimisation. You asserted your right to be compensated for work related injury (i.e. damaged tooth), now they are using that as a unreasonable and unjustifiable reason to not pay you the bonus but still pay everyone else!

Now how many years have you worked for the company, and out of those years how many years have you been paid the bonus? Yes am thinking along the lines of custom and practice, making the bonus an implied term of your contract and therefore meaning the company is in breach of your contract.

[Davea]

Re: Bonus payment.

I've worked for them for 24 years.
It started out as a largeish family business, was sold and sold sold again until it reached the current owners who are a very big, Germany based and world wide company. In the time I've worked there they've always paid us something at Xmas, even when times were not so good.
i suppose it's goodbye to my gold clock as well, next year.mashappy:
i can't believe how long I've worked there actually.

[teaboy2]

Re: Bonus payment.

I've worked for them for 24 years.
It started out as a largeish family business, was sold and sold sold again until it reached the current owners who are a very big, Germany based and world wide company. In the time I've worked there they've always paid us something at Xmas, even when times were not so good.
i suppose it's goodbye to my gold clock as well, next year.mashappy:
i can't believe how long I've worked there actually.

Right - Since you have always received a bonus no matter what, then you are entitled to the bonus as a contractual term of your contract as a result of custom and practice. Custom and practice basically means that is something has been customary for such a long period of time it therefore has become an implied term of your contract - Thats contractual law! Time to put in a grievance and to contact ACAS as well to act on your behalf as a mediator, ACAS is also the first step to employment tribunal, so the employer will likely back down if they suspect your serious about taking action against them for a breach of your employment contract, which is what this actually is, not to mention unlawful withholding of monies due to you, which is a breach of section 13 employment rights act 1996