A short while ago I resigned from my job as a consultant. About a week after resignation I received a letter from my employer stating that they were amending the terms of the bonus scheme. This change threatens to cost me several thousand pounds.
The company says that in addition to recognition of sales performance, it intended the bonus to be a retention device. They therefore acted to change the terms of the bonus so that employees under notice would not be elegible for any bonus payment (this was not previously in the contract). Given that I had already resigned, they offered to pay me 50% of it.
Under most circumstances I would probably be prepared to accept this. However, I am aware that a colleague who left the business a few months earlier than me was paid her 2 outstanding installments from the previous year’s bonus (the total amount is payable over 3 years). Interestingly, her bonus was about 10% of the value of mine.
My employer says that they are entitled to make this change because the contract contains a clause stating that they reserve the right to amend or terminate the bonus scheme at any time. I feel that they should not be allowed to change my contract after I have resigned, as it effectively makes my contract worthless. I can believe that they never intended bonuses to be payable to people under notice. However, by acting to change the contract and by paying out in the only previous resignation of someone within the sales bonus scheme, I feel that they have shown that my contract entitles me to the full bonus.
The legal advice I have had to date suggests that I have a strong claim, but that it is not necessarily an open and shut case. I would be interested in any expert views, as I don’t want to risk the cost and stress of a tribunal unnecessarily. Thanks for your help in advance.
Martin Richard
