When is the procedure for depriving an employee of a bonus legal and when is it not?
Posted: Wed Jan 29, 2025 7:25 am
Legality is determined by the bonus system adopted by the company. There are special documents that stipulate the conditions for calculating additional material rewards. The documents may be as follows:
Regulations on remuneration and accrual of bonuses (these may be two different documents)
It is desirable that it be mandatory at large enterprises. The same applies to companies where a large part of the employees or even all of them receive a bonus. Then the documents journalist email list stipulate a list of conditions under which these additional payments are made. The list may be as follows:
grounds for calculating material remuneration (planned indicators that must be achieved are indicated);
list of employees who will be awarded additional payments;
specific bonus amounts;
reasons why the bonus may be reduced or not paid, other information.
An employment contract concluded with a specific employee
This is an option for companies where only some employees receive additional material rewards, so separate documentation is not developed for this. The contract contains a clause that sets out the terms of accrual and payment of bonuses, which are mandatory for the signing parties.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
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Deprivation of bonuses to employees is considered legal only if the employee has confirmed his consent to all conditions, i.e. he has read these conditions and signed them (in the employment contract or in a special provision on bonuses and remuneration).
In addition, by law, the documents must clearly state that we are talking specifically about additional payments of a periodic nature and accrued only if a number of pre-agreed conditions are met.
Depriving employees of bonuses will be contrary to the law if the accepted wage system (or contract) prescribes mandatory payment of bonuses. A number of other actions of the employer that fall into the category of illegal can be named:
It is not possible to withhold from the salary the amount of a bonus that was previously paid to the employee. There is no law that would allow this. The employer has the right to cancel the payment of money that has not yet been issued to the employee, but here too a number of conditions must be met.
It is not possible to deprive a bonus by stating reasons that are not specified in the local company documentation. This means minor violations or long-term absence due to illness, child care, vacation, etc.
Regulations on remuneration and accrual of bonuses (these may be two different documents)
It is desirable that it be mandatory at large enterprises. The same applies to companies where a large part of the employees or even all of them receive a bonus. Then the documents journalist email list stipulate a list of conditions under which these additional payments are made. The list may be as follows:
grounds for calculating material remuneration (planned indicators that must be achieved are indicated);
list of employees who will be awarded additional payments;
specific bonus amounts;
reasons why the bonus may be reduced or not paid, other information.
An employment contract concluded with a specific employee
This is an option for companies where only some employees receive additional material rewards, so separate documentation is not developed for this. The contract contains a clause that sets out the terms of accrual and payment of bonuses, which are mandatory for the signing parties.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company's target audience
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153414
Deprivation of bonuses to employees is considered legal only if the employee has confirmed his consent to all conditions, i.e. he has read these conditions and signed them (in the employment contract or in a special provision on bonuses and remuneration).
In addition, by law, the documents must clearly state that we are talking specifically about additional payments of a periodic nature and accrued only if a number of pre-agreed conditions are met.
Depriving employees of bonuses will be contrary to the law if the accepted wage system (or contract) prescribes mandatory payment of bonuses. A number of other actions of the employer that fall into the category of illegal can be named:
It is not possible to withhold from the salary the amount of a bonus that was previously paid to the employee. There is no law that would allow this. The employer has the right to cancel the payment of money that has not yet been issued to the employee, but here too a number of conditions must be met.
It is not possible to deprive a bonus by stating reasons that are not specified in the local company documentation. This means minor violations or long-term absence due to illness, child care, vacation, etc.