Being made Redundant advice on Bonus due

T

tivanagh

Registered User
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Hi All

I was just wondering if anyone has a bit of previous experience in this area.
Basically I was informed the other day that I am being made redundent next February due to company rationalisations.(I have been told early as I am key to assissting in the rationalisations) My question is over bonus entitlements. Each year I get a company bonus based on profit performance etc which we usually get but thing is we would not be due to be paid the 2008 bonus till March 09 payroll. However as I have just outlined I am being let go in February 09. My question is therefore what if any are my entitlements to the bonus or can they just tell me "Hard Luck" and that there is no onus on them to give me the 08 bonus as I was not part of the March payroll.
Many Thanks.
 
Talk to them about this now and get an agreement in writing. You need to look carefully at the terms of the bonus payment to make sure whether it applies to you. If it does not, negotiate!
 
Yeah I must have a good look at the contract. However, I was looking to start negociations but wanted to find out the status of the bonus entitlements before negociations properly open up. Its a situation where if there is no onus on them to give me the bonus and I get it then its a win for me. Otherwise if they offer me the bonus and nothing else and I accept it even though I was entitled to it anyway then I would be a bit of a fool for not getting more. Im guessing its a tricky one and can be interpreted both ways.
 
Have you got an idea of what the redundancy terms are? What's driving the 'rationalisations' - if it is to stem falling profits, or because of losses, would they still be paying bonuses?
 
Diziet said:
If it does not, negotiate!
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Not sure what he really has to negotiate with here. If he leaves/threatens to leave he won't get the redundancy, or the bonus. If he has been with the company a long time the redundancy payment might be too much to walk away from, and they would know this.

I was with a previous employer for 7.5 years, in the last couple of years of employment they had a number of rounds of redundancy, but I was never one of them, in 2 cases my entire team other than me was let go. While there was a certain degree of loyalty from the MD to me (I was there from start), I am also sure that cost played a part. I was happy to stay as I got experience in a new area that changed my career significantly.
 
rmelly said:
Not sure what he really has to negotiate with here.
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Well, we don't have enough information to say if he does or he doesn't. However, the OP indicates that he needs to stay until February so he may be able to do this to guarantee that he won't simply take his last 4 weeks holiday, for example.
 
Diziet said:
Well, we don't have enough information to say if he does or he doesn't. However, the OP indicates that he needs to stay until February so he may be able to do this to guarantee that he won't simply take his last 4 weeks holiday, for example.
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Yes, but as I said, if he want's his redundancy payment he has to stay.
 
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