What is the name of your state? IN
Hi,
I have a question. The company I work for pays bonuses in Feb/Mar for the previous year's company financial performance.
It also deposits a profit share amount into the 401(k) accounts based on the same year.
In our handbook, the profit share and bonus information is in the same section together. The profit share states that an employee must be actively employed on December 31 to receive it.
The bonus does not stipulate anything except an employee must have at least one year of service to recieve it.
We have an employee that terminated voluntarily in Jan of this year. He expects to be paid for both the profit share and the bonus. The company heads accepts the fact they owe him the profit share, but do not want to pay the bonus.
I foresee it becoming an issue if we don't pay him (e.g. him pursuing the matter further).
Can anyone offer their opinion in this matter as far as whether or not it is worth the fight of not paying the bonus? Any thoughts on if this were persued by the employee if we would have any obligation to pay it out? There is no past precedent in the company for a situation such as this to rely on for historical practice.
For the record, the revised handbook is coming out next week and has been updated to state you must be actively employed at the time bonuses are paid.
Thanks!
Hi,
I have a question. The company I work for pays bonuses in Feb/Mar for the previous year's company financial performance.
It also deposits a profit share amount into the 401(k) accounts based on the same year.
In our handbook, the profit share and bonus information is in the same section together. The profit share states that an employee must be actively employed on December 31 to receive it.
The bonus does not stipulate anything except an employee must have at least one year of service to recieve it.
We have an employee that terminated voluntarily in Jan of this year. He expects to be paid for both the profit share and the bonus. The company heads accepts the fact they owe him the profit share, but do not want to pay the bonus.
I foresee it becoming an issue if we don't pay him (e.g. him pursuing the matter further).
Can anyone offer their opinion in this matter as far as whether or not it is worth the fight of not paying the bonus? Any thoughts on if this were persued by the employee if we would have any obligation to pay it out? There is no past precedent in the company for a situation such as this to rely on for historical practice.
For the record, the revised handbook is coming out next week and has been updated to state you must be actively employed at the time bonuses are paid.
Thanks!
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