Question about annual bonus and leaving job

[zieg]

Edit: Alright, I've decided that if I do leave before the bonus is paid, I will simply consider it lost and won't kick up a stink about it. Thanks for the input everyone. I've been with this employer for quite a few years and it's been the first time I have been in this situation, but I'm glad I asked about it.




Not too sure where to ask about this one, so I thought I'd try here.

Here are the relevant facts:

-Annual performance bonus based partly on company profits, mostly on personal performance (achieving goals etc)

-Bonus is paid as a percentage of earnings over calendar year

-Bonus is paid out around April once all the financials are done


My question is, if I leave the company in say February, after having worked the entire year before, am I still entitled to the bonus in April?

The way I see it, the bonus is part of my compensation and therefore earnings that I am legally entitled to. When I called the Government of Canada information line, they said since a small part of it is determined by company profits, the whole bonus is considered discretionary and if I leave before it's paid, I'm essentially fucked.

Opinions? Experiences? Obviously I can't just go and ask HR on this one. Not sure I can keep my sanity to stick around til April but the bonus is going to be like 25%.

[revelations]

My vote = lose 100%

No money is worth sanity and mental health. I would try getting a LOA first though ..... no harm anyway.

[NoMoreG35]

I really don't see a reason why the company would give you the bonus if you no longer work there.

[syscal]

Only in Alberta...

[pheoxs]

Every job Ive been at if you leave before its in your bank account you lose it, regardless of when the period they calculate it is.

[zieg]

Hm, that's what I was afraid of. Okay, thanks everyone. Good to know. It's certainly not the only factor here but it is a consideration.

[spikerS]

performance bonuses are a reason to stay at the company. If you leave, they have no reason to pay.

Start drinking. if base pay is $60k, there is a lot of shit I would put up with for $20k...

[woodywoodford]

Depending how in demand you are, some employers will give you a signing bonus to make up for your walking away from the bonus. Not likely for junior roles but later on..

[e31]

Actually, you are entitled to the bonus money. Any employment lawyer could tell you this. If you think you are up for some big money it might be worth pursuing.

Do your homework folks, Know your rights.

[HiTempguy1]

Originally posted by e31
Actually, you are entitled to the bonus money. Any employment lawyer could tell you this. If you think you are up for some big money it might be worth pursuing.

Do your homework folks, Know your rights.

Ding!

Now of course, the reality of the situation is that they own your ass and have the lawyers to make it hell to get your money and drag it out.

As someone else said though, $20k net cash (as an example) is worth A LOT to me at this point in life, I would gladly spend a lot of time fighting for that kind of cash. If I was 45 years old? Prolly not so much.

[blitz]

Pursuing legal action to get your bonus is a good way to burn every bridge you've made

[zieg]

Well I guess, the matter of legal entitlement aside, probably best to just stick it out til the spring, and that early in the year I'd be much more comfortable walking away from ~1/4 of 25%, heh..

[pheoxs]

Originally posted by HiTempguy1


Ding!

Now of course, the reality of the situation is that they own your ass and have the lawyers to make it hell to get your money and drag it out.

As someone else said though, $20k net cash (as an example) is worth A LOT to me at this point in life, I would gladly spend a lot of time fighting for that kind of cash. If I was 45 years old? Prolly not so much.

It's not that simple actually, there are quite a few criteria to meet to be able to be eligible to receive the bonus after he leaves. If the employment agreement was written by a competent lawyer the wording will legally get them out of paying the bonus. (The employer can specify the bonus will not be paid if the employee leaves, and that is perfectly legal)

If it's a smaller firm or a union job or something, then he likely may be able to get it. All depends on the wording on the agreement that specifys the bonus. And that he's received it before, other employees are receiving theirs, that the bonus is framed as a significant portion of the employees compensation, and other things.

[leftwing]

Originally posted by e31
Actually, you are entitled to the bonus money. Any employment lawyer could tell you this. If you think you are up for some big money it might be worth pursuing.

Do your homework folks, Know your rights.

I would assume every company, or at least most, would have some sort of disclaimer saying that to receive the bonus you need to be employed up to a certain date (most likely date of payment).

I wouldn't expect my bonus if I left my company.

[kaput]

.

[FraserB]

Would taking a bunch of vacation or stress leave hurt the bonus?

[Neil4Speed]

You would be tied to the rules of the plan text of your bonus. Your plan text would almost certainly state that you must be an active employee on the date of the bonus paid in order to receive the bonus.

[BrknFngrs]

Unless your bonus/employment agreement specifically states otherwise you'll be SOL if you leave before the bonus is paid out

[ExtraSlow]

Even if it might be possible to take legal action to get that bonus, there are two very good reasons not to take that path:
1) The lawyer will take a BIG slice of any money you do get
2) it can have a huge negative impact on your reputation.

In many businesses, reputation is everything, and this is a surprisingly small city.

But, I'm pretty sure every place I've worked recently has had it clearly written that you have to be employed on the date of payment to be eligible.

[killramos]

Yup even iff you sued quitting would almost certainly bump you to the lowest discretionary bonus category for example my bonus os xx-yy % and quitting and dieing would almost certainly mean xx

Managemt has made it quite clear to us that all the short term incentive, long term incentive, raises, and stock option dividends are paid at staggered dates on purpose to make it difficult to quit all year