Pro-rating pay...not in writing

[kasey]

I work for Fortune 500 company - my office location is in Kansas. Six months ago I signed an offer letter listing my salary, sign-on bonus and possible merit-based bonus to be paid in February or March of the following year (now). HR will not give me my full bonus (as requested by my manager, based on my performance) - they say it's because it should be pro-rated. Pro-rating is not in my offer letter; the language is very clear that I'm elegible for a full bonus. Nor was this agreed to - or even discussed - verbally (although I'm afraid they will claim that it was - becoming my word against theirs). Who's right in this situation? What can be done BESIDES taking legal action (I don't want to "mark" myself as a trouble-maker. I just want what's mine)? Thanks.

 

[loku]

Bonus

If the language of your employment contract clearly states you are eligible for a full bonus, based on your performance, and if your manager approved the bonus based on your manager’s judgment of your performance, then your are entitled under contract law to the full bonus.

If you don’t want to take legal, then perhaps you can discuss it with some officer of the company, who has authority over HR, or with the company legal department. Or consider having a lawyer write a letter to HR.

 

[kasey]

now they say it's not a contract....

I appreciate your help - and what you said is just what I was thinking the answer would be. However - I'm now being told that what I signed was NOT a contract, but simply and offer letter, and there's a difference.

What's the difference?

And - what would prevent me from quitting and refusing to pay back the sign-on bonus that my "offer letter" states I'm required to do if I leave the company before a full year of service?

Thanks, again.

 

[loku]

Offer rather than contract

To have a contract, there must be an offer and an acceptance. It sounds like they were very careful to classify the document you signed as an “offer letter” rather than your acceptance of their offer. So the question is, “Did they accept your offer?” and if they did, “what were the terms of acceptance?” The terms can be either explicit or implied by the circumstances.

You have a good point. If your letter was an offer and they did not accept it, then you are not bound by its terms. If is was accepted, then you would be bound, but so would they. So the question is, would they have any other authority for having you return the bonus?