Can a company refuse to pay a bonus?

An employer may not refuse to pay you wages or bonuses that you have earned. Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only.

Can a company refuse to pay if the goals are met?

Whether you have earned the bonus and whether the employer may determine the amount of the bonus in its discretion are likely the main issues. If it is a true ‘discretionary bonus plan’ then having met your goals may only make you eligible for a discretionary bonus; that is, for a bonus that can be at any amount the employer wishes, including zero.

What makes a contract valid for an employee bonus?

For a contract to be valid, both the employer and the employee have to exchange something of value . In other words, the employer has to get something in return for the employee bonus. This is usually the case when a bonus is promised for subsequent employment.

Can a court order an employer to pay an employee a bonus?

It depends. In many cases, courts have allowed partial payment of a bonus, depending on the actual duration of the employment. However, this has only been the case where termination was based on good terms (i.e. a mutual decision between employer and employee, or termination by the employer without fault of the employee).

Can a company refuse to pay you a bonus?

But if it is normal practice for your employer to pay bonuses, you may be able to argue that they have in fact become an entitlement — regardless of what the written contract says. Another common situation is where the contract states that bonuses are not payable to employees who are on notice, or have stopped working for the business.

When do employers have to get something in return for a bonus?

In other words, the employer has to get something in return for the employee bonus. This is usually the case when a bonus is promised for subsequent employment. Here, the employer’s return benefit comes from employee’s future work. However, this cannot be the case when a bonus is promised for past employment.

How does a bonus work in a contract?

For a contract to be valid, both the employer and the employee have to exchange something of value. In other words, the employer has to get something in return for the employee bonus. This is usually the case when a bonus is promised for subsequent employment. Here, the employer’s return benefit comes from employee’s future work.