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aar
11-27-2006, 04:44 PM
I recently gave notice to my employer that I would be leaving the company because I had accepted a job offer with another company. My question concerns the bonus. In my contract Bonus's are listed 2nd, just below my annual salary and states that it is based on performance and the companys profits.

I will be leaving two weeks before the end of the year and have been told I will not get my bonus. No where in my contract does it state that I must be employed at the time of the bonus and several people have stated to me that I should get it because it is clearly stated in my contract. Is this true and if so what recourses do I have to get it if they still refuse?

Thank you in advance for any and all help I get.

BSPCPA
11-27-2006, 07:25 PM
aar: several people have stated to me that I should get {my bonus} because it is clearly stated in my contract..

Eligibility for a bonus payment is determined by the terms of the bonus plan. A recent Court of Appeal case, Neisendorf v. Levi Strauss & Co., (decided August 2006) has confirmed that employers are free to establish bonus plans which condition bonus payment on the employee's continued employment with the company as of the payout date.

If it is "clearly stated in your contract" that you are entitled to the bonus regardless of whether you are employed on the date the bonus is paid to employees, I agree with the "several people" you have spoken with. If not, you may be SOL.

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