Annual bonus payouts in the work place

Annual bonus payouts in the work place

Employers be aware, it is that time of the year again where annual bonuses are due to be paid out to employees.

As a word of warning, if the company has been paying bonuses on a regular basis over the past few years, it becomes the norm and your employees have probably spent the past few weeks planning when and how he is going to spend his bonus.

Do not wait until the day of the expected payout, to inform the employees that there are no bonuses for this year, or until he goes to the bank or opens his payslip on payday, as this is tantamount to an Unfair Labour Practice, irrespective of whether or not there is a clause in his contract along the lines of “Bonuses will be paid out at the discretion of management”.

As the employer, you should by now have realised, if not a few months ago been aware that it is not possible to pay bonuses. 

If that is the case, the employer should have, and if not done, immediately notify the employees of the financial situation of the company and inform them that there will be no bonus payouts this year.