Annual Bonus Withheld

[Guest n446987]

Anyone aware of rules governing company bonus payments. Can a company withhold a bonus payout because an employee quit in November? Shouldn't a prorated 11/12's payout be made? Thanks

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Norm

[Guest pswanno]

i don't know myself, but i will find out and let you know. please do the same for me if you have any info since my girlfriend is having the same problem

[Guest CLKeown]

To the best of my knowledge, the employer is under no obligation (legal or otherwise)to pay an annual bonus (pro-rated or otherwise) to a terminated employee, unless the bonus is guaranteed in the employee's offer letter or employment agreement.

In cases where the bonus is guaranteed; however, there is often a clause governing the pay out of such bonuses. These clauses often stipulate that the payment will not be made if the employee was terminated for cause, or terminates before a certain date, etc.

The only caveat to this is the Commonweath of Puerto Rico, where an annual Christmas Bonus is mandated, to all person's you employed during the year, regardless of their current employment status.

Carole