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Terimination Bonus

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kmb57

Junior Member
What is the name of your state (only U.S. law)? New York

My job was eliminated at a fortune 500 company. They have retained me on from July 23rd (termination date) until August 30th 2013. For me staying on during this transition period, they will pay my regular salary and benefits. If I stay until August 30, and I do my job, They will pay me a lump sum bonus. I have agreed to work during this period. My question is, What if I get hired by a different department within the company before my transition date ends. Do I still get my bonus? Can they pro rate it? Can I defer my new position until September 1? The HR director still couldnt answer my question. I do have this in writing, but it does not mention anything about me getting rehired.
KB
 


swalsh411

Senior Member
There is no law which addresses your situation. If you want the bonus, I suggest you abide by the terms of the agreement.
 

sandyclaus

Senior Member
What is the name of your state (only U.S. law)? New York

My job was eliminated at a fortune 500 company. They have retained me on from July 23rd (termination date) until August 30th 2013. For me staying on during this transition period, they will pay my regular salary and benefits. If I stay until August 30, and I do my job, They will pay me a lump sum bonus. I have agreed to work during this period. My question is, What if I get hired by a different department within the company before my transition date ends. Do I still get my bonus? Can they pro rate it? Can I defer my new position until September 1? The HR director still couldnt answer my question. I do have this in writing, but it does not mention anything about me getting rehired.
KB
You'll have to check with them regarding the terms of the bonus. Did you sign anything that provides details?

I went through a similar "reduction in force" myself a few years back. The agreement was that we were to remain in the same position, maintaining a specific level of performance and quality for the entire bonus period in order for us to qualify. If we left the position early, or didn't maintain a high level of performance/quality, then we still lost out jobs on schedule, but got no bonus. We had a 3-tier level system and specific measured goals which determined what bonus, if any, we qualified for.

Those thay wanted to take new positions during the transition period were encouraged to do so, but leaving prior to the end of the period meant we got no bonus - not even if we met goals for it before we left. They didn't prorate unless your transition period were extended - and even then, we had to commit to the entire period in order to get the bonus. Mine, too, was a Fortune 500 company, and many of us relocated to new positions within the company instead of completely leaving the company (that was possible because the RIF only affected our division, which was relocating to other states to save money; the rest of the company remained intact).

My answer, from experience, is that unless you remain for the full transition period, there will be no bonus for you. I would suggest that you ask the other department to adjust your start date if possible; otherwise, you'll need to made a decision whether to take the job and miss out on the bonus, or take the bonus and miss out on the job opportunity.
 

kmb57

Junior Member
Bonus

I have and will abide by the bonus agreement by dueing my due dilligence and complete any tasks asked, but I am pursuing a position with another department. Can they rehire me a day before my bonus due date, and have me forefit my bonus by agreeing to the new job?
 

sandyclaus

Senior Member
I have and will abide by the bonus agreement by dueing my due dilligence and complete any tasks asked, but I am pursuing a position with another department. Can they rehire me a day before my bonus due date, and have me forefit my bonus by agreeing to the new job?
Yes, they probably can.

I'm sure you can pursue, but it's the start date that will be key. The outgoing department is counting on functioning with a certain staffing level until the last day of that transition. You leaving a day early can affect that.
 

kmb57

Junior Member
Bonus and vacation

I have not signed anything. I will receive my severance package about 2 weeks before my end date. I was told that the severance package and the bonus are seperate deals.
Another question is I have vacation time (which I will not be paid for as part of my severance) If I take vacation time in AUgust, can they then say I did not complete my bonus agreement. All the agreement for bonus is that I remain at the job until my end date of August 30. My family vacation is schedule for August 19-23.
 

swalsh411

Senior Member
It probably means you have to be an active employee though the end of the period, so taking your vacation week should be fine, but again this is no law which addresses something this specific. If you believe you have fulfilled the agreement, and they don't pay you, you can sue them.

NY law requires you be paid out for any unused vacation time unless the employer has a policy specifically saying it will not be. Does your employer have a policy saying vacation won't be paid out upon termination?
 

kmb57

Junior Member
My employer will only pay out my 3 weeks, but I have accrued over 5 weeks vacation.
Thanks for the advice.
 

swalsh411

Senior Member
Is this 3 weeks of vacation in a policy that was in effect during the course of your employment or is this just something they told you when they said you were being terminated? They can't legally just make up a new policy when they decide to terminate somebody. Unless this was documented policy prior to you being notified of the impending term, they owe you all your vacation.
 

sandyclaus

Senior Member
My employer will only pay out my 3 weeks, but I have accrued over 5 weeks vacation.
Thanks for the advice.
The 3 weeks vs 5 probably won't even be an issue unless you find yourself leaving the company entirely. If you intend to transfer within the company to a new position, won't the company just retain your vacation for you to use at a later date instead of paying it out to you?
 

kmb57

Junior Member
Yes, Im sure the company will extend my vacation time if I stay within the company. There is indedd a policy on vacation time and severance pay. They will only pay out Vacacation on the amount I earn each year (for me this is 3 weeks) the max they will pay out is 4 weeks. I have already bought airline and hotel for a vacation in August so I do not want to take a chance that Im going to be rehired and not take a vacation that I have paid for and the company is not paying me for that time I have earned off. The catch 22 is that if they do not rehire me and the hold off paying my bonus out because I took time off during the transition period. In addition, my direct report was laid off too, so I have another report that I will have to ask about me taking this vacation. I have been more than complying with helping him during the transition. Ofcourse my perfect plan would be to take my time off, finish out my term with the company thru August, get offerred a new position and start Sept 1, and collect my Bonus.
The question now is do I try and talk to HR and get these possible scenarios in writing? Thanks for the advice.
 

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