Worked as a Consultant (Not Employee), Resigned but No Bonus Paid?

I recently resigned from a consultancy post at my job.

I agreed to work 5.5 weeks notice to make things easier for the company bringing me to the end of June. (in my contract it states only 4 weeks required or less by mutual agreement)

I was told via email by the payroll lady my quarterly bonus due on 15th July and covering March - June had been signed off and she sent me my final invoice/payslip at the end of June showing this.

However I have only received my accrued annual leave which was 5 days late and no one has come back to me regarding my bonus.

Does the company have the right not to pay me my bonus in this case?

Thanks all

Comments

  • +4

    they dont have to pay you anything

    • -1

      Payroll lady may have been wrong.
      She doesnt make the decisions

      How much is the bonus?
      Is it worth pursuing?

  • +10

    What does contract say about bonus…

  • +3

    Does the company have the right not to pay me my bonus in this case?

    yes

  • +11

    Does the company have the right not to pay me my bonus in this case?

    Simple answer which no one here can give you but you…

    What are they contractually obligated to give you according to your agreement?

  • +5

    Some contracts will say something like "any unpaid bonuses are forfeit upon resignation"

    It's almost like you should have read your contract and are probably SOL

  • +1

    Check your employment contract. If it’s a discretionary bonus then they can choose to not pay it

  • Yes

  • +2

    The bonus is to encourage retention. You resigned so you aren't getting it.
    Why would you resign before it is paid?

  • +5

    Weird arrangement. Why as a consultant is remuneration being withheld via bonus payment? Consultants don't accrue leave.

  • Contract doesn't say discretionary bonus.

    Under 'Termination' it states -a number of clauses (including the clause which relates to commission), remain in full force and effect after termination of this
    agreement.

    • +3

      Termination is generally employer-initiated, resignation is triggered from the employee side. There may be different provisions for each.

  • Commission is different to bonus. One is earned directly as a result of actions (e.g. sale). The other is usually awarded based on success against certain targets/criteria - hence is usually more discretionary in nature.

    Most policies (in the bonus/remuneration space, not necessarily employment contract) state that staff member must be employed (and not serving a notice period) at time of payment of the bonus to be eligible.

  • +2

    Why are you asking Ozbargain? If they signed it off as you say, why don't you ask them….

  • -3

    Well I just thought i'd get some opinions based on experience?… before going down that road - aren't forums useful in that respect?

    • +1

      They are, you may have missed the title of said forum eg Ozbargain. No bargain related topic here, you may want to find a forum where you can seek legal advice associated to your particular issue

      • +3

        Is a bargain for the employer!

    • +1

      You've gotten your answer, it just happens to be the case that it's not the answer you want to hear.

  • +1

    If you're being paid annual leave you're an employee of someone.

    Anyway, unless you post what you bonus says about contracts all any of us can do is guess. Also, using the reply button makes following your posts a lot easier.

  • They signed it off and I was sent the invoice but the commission has not been paid….thanks freefall101 i'm new here -will use the reply button moving forward :-)

  • +1

    Fwiw, every place I’ve worked has not paid a bonus to anyone in their notice period.

    …which is why there’s a rush of resignations on the day annual bonuses hit bank accounts.

    Sorry, probably not what you want to hear but unfortunately it’s quite common for people to miss out on bonuses for this reason. But - this is all dependent on your employment contract and the “terms” they have on their bonus structure. If it’s not in writing that you’ll loose it, then you could fight; if the solicitor fees are worth it

    • ehh I didn't see your response. Yes, agreed.

  • +1

    Most businesses I know have a rule (though not widely publicised) that you have to be an active employee on the bonus pay date, otherwise you're not eligible. So, active employee meaning you've not resigned as of that date. Being in the notice period will also disqualify you from receiving any bonuses. Does this apply to you?

  • +1

    i'm not a contractor or employee but i want a bonus from them too 🥺

  • "rtfm" meaning read your contract

  • From my experience working in consultancy if it’s a bonus there will be conditions attached to it and one of those will likely be you have to be employed and not under a notice period. There’s also commissions and allowances which are all handled differently. From some of your comments you call it a bonus but seem to think it’s more one of the other 2

  • Check your contract. Often there will be a clause that states they don’t have to pay your bonus if you put in notice before it is paid. It used to be common for last day worked but it’s become more common to base it on notice.

    It’s why there’s so many resignation letter on bonus day.

  • +2

    It's weird that you're getting annual leave if you were a contractor rather than an employee.

    • Not a contractor a consultant. With the limited information we have, I’m assuming OP gets paid by a consultancy firm as an employee and is sent out to different clients???

      • Title says 'not employee'. If not an employee, that only leaves contractor.

        • +1

          I agree but in all my years of contractoring I’ve NEVER heard of another contractor getting a bonus so I believe it’s lack of information!
          *edit: I also thought legally contractors can’t get annual leave otherwise they are treated exactly like an employee!!

  • Never resign before you get the payment you think you’re entitled to

    Even if you think you’re entitled, the legal fight to get it is expensive, time consuming, and may not work.

    You only make this mistake once in life

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