With regard to the award of liquidation damages, the NH law provides that the employer may be liable for the liquidation of damages to the bite, up to double the amount owed, if an employer does not deliberately and without good reason pay an employee`s salary. Here, where the company did not have a written policy requiring the maintenance of employment as a qualification for the payment of the year-end bonus already earned, there was evidence that the employer should have known that it owed the bonus and that it was retained “simply because the owner” was upset that the “employee” transferred to another job after investing so much time and effort in their training. RBS, which is majority-owned by the taxpayer, is reported to be paying some $340 million in personal bonuses this year, while Lloyds Banking Group could distribute even more. No matter who the employer is and how much control it is, calculating bonuses can be a problem. Fiona Cuming completes five employment law cases in which the employer made a bonus error. The Victorian Supreme Court found that such promises had indeed been made, and although they existed only orally, the agreement confirmed and required that the company pay an additional half a million dollars to the employee. This case was brought by employees of an investment bank with respect to their right to a bonus. The workers stated that they had been informed by the employer that they would participate in a guaranteed minimum bonus pool that would only be subject to the assessment of the individual benefit. On the other hand, the employee believed that he was still entitled to several hundred thousand additional dollars, because as part of the redundancy talks, the company had entered into a verbal agreement and promised to ensure that it would always receive the deduction bonus. Both parties must have shown that they intend to create a legally binding agreement for the courts to recognize it as such. The employee held a management position in the company, with a clause in his contract that provided that he would receive a deduction bonus if he stayed in the company until a certain time – a date that was still in the future for several months, when the company began talking with the employee to terminate his work for dismissal. An oral bonus agreement (that`s the right term; not “verbal”) for a bonus is non-binding, because there is a job at will, or the legal doctrine (the law in the 50 countries) that the employer can change the terms of employment, including pay (for example.
B salary and bonus) at any time. Only a bonus contract written for a fixed term (for example. B a bonus contract signed each year) binds the employer to his convenience. Thus, the employer is free to reduce or even refuse the bonus now. Ensure that all compensation agreements are concluded in writing. The principle of “offer and acceptance” is really as simple as it sounds when someone makes an offer and you accept – then you have taken the first step to make an oral agreement legally binding. Ms. Hansen argued that the company`s inability to pay all of its declared bonus was an illegal wage deduction.