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Laid Off Yesterday - Contract question

2,847 Views | 16 Replies | Last: 1 yr ago by Petrino1
StaffingMgr
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The company was not doing well at all, so wasn't totally surprised. Recruiting agency and the industry is way down. I ran the Recruiting Ops for IT.

My question for the TexAgs masses is around my term letter and my original employment contract I signed w/ them. The offer I signed had an annual discretionary bonus for Sr. leadership written in, based on "individual performance".

Well, after my 1 year mark early in 2022, I started asking questions about that bonus --- what was the status, how much did I earn, when will it get paid out, etc. My mgr pushed the questions to CEO, and she was very dismissive of the entire situation, to the point of not even acknowledging the bonus, basically saying it was a mix-up and error from the person who put the offer letter together (my mgr at the time)... even though the contract is signed by her.

I followed up multiple times over last 1.5 years, and finally let it go, realizing they had no intention of acknowledging, let alone honoring or paying out any of the bonus. It was a very dishonest & unethical way of inflating my total potential earnings.

Then yesterday comes and they offer me 6 weeks paid severance. My initial thought was to counter or push back, and bring up again the (2) annual discretionary bonuses that I didn't see a dime from.

However, it was a bonus in nature, so I'm guessing they could easily say I didn't qualify, or something to that effect. The company is HQ'd in Illinois, and I'm in Austin, so that brings a whole new set of questions.

Any advice on how to handle? Get lawyer to look at? Any hope to getting more money?

Thanks all in advance.
htxag09
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AG
nm
Petrino1
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OP, you dont really have much of a case here, bonuses are not guaranteed. Also, its an offer letter, not a contract.

No harm in trying to negotiate with the company for more severance/bonus, but be prepared to be told no, especially since they aren't doing well financially.
cab559
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AG
Sorry OP. I would just take the six weeks and move on.

Probably a blessing in disguise to find a new gig given they had no intention to pay you a bonus. Hope you end up in a better situation.
Sims
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AG
I'm trying to be flippant or trite when I say this, but if you spent a year and a half attempting to encourage your employer to give you a discretionary bonus that you felt entitled to even after they said no - your current disposition with the company isn't surprising.

The more appropriate way to somewhat ensure receipt of a bonus early on with a company is to have the offer letter state that a bonus will be paid at X% level simply by the status of your employment at some date in the future. Thereafter, it can revert to discretionary paid for performance.

Discretionary bonus in an offer letter should immediately be set to the side as not indicative of compensation package.
StaffingMgr
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Thanks for the feedback all. FWIW, the company did extremely well in 2022, 35% YoY growth... and my team numbers were quite high, so it's not like me/my team were flat terrible. Again, they simply never had intentions of honoring the bonus. There were other questionable situations with commissions/bonuses with other employees along the way. I've known for a while they were shady.

Sounds like best to just move on...
JamesPShelley
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StaffingMgr said:

Thanks for the feedback all. FWIW, the company did extremely well in 2022, 35% YoY growth... and my team numbers were quite high, so it's not like me/my team were flat terrible. Again, they simply never had intentions of honoring the bonus. There were other questionable situations with commissions/bonuses with other employees along the way. I've known for a while they were shady.

Sounds like best to just move on...
Did I miss something?

You mention the offer letter... and the contract.

What does the CONTRACT say about the bonus?

Also... just because you left/are leaving... just because you may not work there anymore doesn't mean you can't pursue the bonus quid... provided contractually it was assigned.

I have never gotten how people just leave money on the table because a thread so advises.

I have never, ever, left a dime on the table... and **** bridges.
htxag09
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Quote:

I have never, ever, left a dime on the table... and **** bridges.
It takes someone pretty arrogant...and ignorant to really believe they've never left a dime on the table.....
Fins Up!
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I'd get an attorney. At a minimum, try to get 3 months severance, benefits paid. Try to get 6 months if you have VP or Director in your title.

This is what you hire counsel for.
JamesPShelley
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htxag09 said:

Quote:

I have never, ever, left a dime on the table... and **** bridges.
It takes someone pretty arrogant...and ignorant to really believe they've never left a dime on the table.....
Don't confuse arrogance with confidence. Ignorance would be not knowing what would be the likely outcome absent a solid position and good information going in.

My wife... the one with the blacklist? No dimes.

You get screwed a couple times early in your career, and you learn how to navigate the sharks. Unless you're a pushover, or always having someone else fight your battles, you'll learn when you've been stuck. Have a good day. Good luck.
evestor1
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The Chicken Ranch said:

I'd get an attorney. At a minimum, try to get 3 months severance, benefits paid. Try to get 6 months if you have VP or Director in your title.

This is what you hire counsel for.
What kind of attorney would actually take that case? In Texas, it seem like a worthless cause for both sides.
Petrino1
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evestor1 said:

The Chicken Ranch said:

I'd get an attorney. At a minimum, try to get 3 months severance, benefits paid. Try to get 6 months if you have VP or Director in your title.

This is what you hire counsel for.
What kind of attorney would actually take that case? In Texas, it seem like a worthless cause for both sides.
Right! What could an attorney do in this situation that the OP couldn't do on their own? The OP can negotiate a higher severance on their own, or at least try to.
Fins Up!
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Is there any chance of wrongful termination? The OP seems to have proof of excellent performance.
Irish 2.0
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The Chicken Ranch said:

Is there any chance of wrongful termination? The OP seems to have proof of excellent performance.
Literally the first sentence by the OP negates any consideration for that attempt.
Fins Up!
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If he has a written outline of a bonus, he literally might have a case. "Might" being what I would probably discuss with a lawyer. It would depend on what was promised in written form versus what was verbally implied.

kansas02gt
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How can severance be negotiated when victim to a RIF? They are laying you off anyway so whats in it for them to give a higher severance…if any, in the first place.
Petrino1
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kansas02gt said:

How can severance be negotiated when victim to a RIF? They are laying you off anyway so whats in it for them to give a higher severance…if any, in the first place.


You can always ask, but doesn't mean they'll give it to you. I've seen people successfully negotiate extra severance, but they were protected classes and the company didn't want a lawsuit.
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