Bobaloo said:

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IrishTxAggie said:

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If they're not employed at year end, they didn't earn a year end bonus. They're not there at the end of the year.

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Agreed. Read the company policy on the bonus program. I was in a similar situation. I resigned the Monday after the check cleared because the policy stated one must be employed and not submit a resignation priori to receiving the check.

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A bonus to an employee is similar to a tip to a waiter. Why are some folks so militant about paying tips of 20%-25% to a waiter but not so much when companies screw employees with lame technicalities when they have worked diligently all through the year and deserve some recognition in the form of a bonus?

Employees who have worked half the year should be eligible for 50% of their bonus. Cheating them because they were not on the rolls on a certain date is plain cheating.

Then choose to work for a company with the payout structure you want. If you are so adamant about getting paid a certain amount, then negotiate it into your salary and don't call it a bonus anymore.

You don't think the bonus system isn't also meant to serve as a retention system?

agdaddy04 said:

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Then choose to work for a company with the payout structure you want. If you are so adamant about getting paid a certain amount, then negotiate it into your salary and don't call it a bonus anymore.

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How many work places have you seen where you do that?

I hope you say the same when people walk off paying $0 tip. That the waiter should work in a real job and not work in places where he is at the mercy of patrons throwing him some change.

Yes, that's a risk they take with that job. I don't concern myself with what others do.

LOYAL AG said:

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I'm an accountant, not an HR person. Having said that does the employer have a handbook? If so what does it say? If it's silent on this kind of thing that's your first mistake.

I've typically worked with the rule that a bonus is due if the person is an employee in good standing on the day it's paid and I've never had HR object to that policy. If they gave notice and it was accepted and everyone agrees they will work the final two weeks then they are in good standing until the end of their notice period. If they were shown the door and will be paid two weeks severance instead of working they are in good standing until the end of their notice period. Only way I'd say not to pay it would be if it's scheduled to be paid to EVERYONE after their agreed upon last day. In other words don't change their schedule but pay everyone else.

The smart decision is to treat them like an employee in good standing until they are no longer an employee in good standing. Giving notice and working through that period means they are still contributing to the company and should be afforded the respect that comes with doing things the right way. Withholding a year end bonus from someone courteous enough to give two weeks notice just tells the next person that leaves not to give notice which ultimately hurts the company more than the bonus that was withheld.

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This is the right thing to do, with the caveat that a bonus is usually part performance and part retention.

Pay the part that is performance related.

I also run a business so any bonuses come out of my income and my kid's inheritance. It's a character issue for me, if a person decides to move on to greener pastures and helped me grow my business, and I feel they earned it, absolutely I'll pay out the bonus instead of leaning on legal technicalities to grab a few more bucks.

Vernada said:

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You don't think the bonus system isn't also meant to serve as a retention system?

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Nobody should ever use this type of bonus structure as a retention mechanism. It's bad business. You want to retain your employees then compensate them appropriately for 12 months. If you have to throw a wishy washy bonus at them to get them to stay it means you're being short sighted.