Bonus on objectif not defined

[leonnoel]

What is the name of your state (only U.S. law)? New York

Dear,

In my contract I have an article that mentions: "We will pay you a basic salary of US $X per annum plus a $Y variable upon objectives to be defined"

During the year, I received bonuses for "Exceptional results" and the title of the bonus mentions that.
Then by end of the year, my manager and our director told me that our CEO is accepting to pay my bonus. This is off the record of course.

End of the year, I sat down with the director to negotiate increase and bonus. He now refuses to pay the bonus as agreed arguing the exceptional bonus is part of that.
My line is, if those were exceptional they could not be forecasted on objectives to be defined. And objectives were never defined.

After two month of hard negotiation they made me sign a contract amendement with now a fixe salary and a new title.

My question is simple : Can I claim this bonus ?



Thank you in advance for your help and your time.

 

[swalsh411]

Sounds to me like the bonus is 100% discretionary and the employer can choose any criteria it wants or cancel the bonus entirely.

If you have a document outlining what you must do to receive this bonus then you may have a case.

And unless you had a gun to your head, you didn't have to sign anything. You could have walked out the door and found a job with terms more to your liking.

 

[leonnoel]

hi swalsh411,

Thank you for your quick response. Greatly appreciated.

I have a couple of question:

1. How do we legally assume a bonus is discretionary if not written ?

2. No document has ever been provided to define the objectives. But this is an employer duty. So it is "sneaky" to agree on a bonus on objectives and never define them. That being said, if as an employer you don't define objectives and during the year your give your employee a bonus saying "Exceptional result", it clearly means the employee has overachieved your results expectations. So any objectives that would have been defined is overachieved.
Now how as an employer would you justify your position ?

Thank you for your help, I really appreciate your responses.

 

[Zigner]

What is the name of your state (only U.S. law)? New York

Dear,

In my contract I have an article that mentions: "We will pay you a basic salary of US $X per annum plus a $Y variable upon objectives to be defined"

During the year, I received bonuses for "Exceptional results" and the title of the bonus mentions that.
Then by end of the year, my manager and our director told me that our CEO is accepting to pay my bonus. This is off the record of course.

End of the year, I sat down with the director to negotiate increase and bonus. He now refuses to pay the bonus as agreed arguing the exceptional bonus is part of that.
My line is, if those were exceptional they could not be forecasted on objectives to be defined. And objectives were never defined.

After two month of hard negotiation they made me sign a contract amendement with now a fixe salary and a new title.

My question is simple : Can I claim this bonus ?



Thank you in advance for your help and your time.

What bonus?

 

[OHRoadwarrior]

The point is, the employer decides what the objectives are, since you do not have written objectives in writing.

 

[leonnoel]

Zigner,

I am referring to the first bonus. The annual one on the contract.

Regards

 

[Zigner]

Zigner,

I am referring to the first bonus. The annual one on the contract.

Regards

You mean, the discretionary one that is based on ...nothing?

 

[leonnoel]

Hi Zigner,

Yes the one based on no written defined objectives.
Still it does not makes sense for an employer to put a line in a contract and not take 10 minutes to write down the objectives with the employee. this is a lack of duty.

Thank you for your responses and your time.

 

[OHRoadwarrior]

It is not a lack of duty on their part. It is a lack of foresight on yours.

Hi Zigner,

Yes the one based on no written defined objectives.
Still it does not makes sense for an employer to put a line in a contract and not take 10 minutes to write down the objectives with the employee. this is a lack of duty.

Thank you for your responses and your time.

 

[swalsh411]

Still it does not makes sense for an employer to put a line in a contract and not take 10 minutes to write down the objectives with the employee. this is a lack of duty.

Sure it does if it gets the employee to work harder and then there is no obligation to pay it. Consider it a lesson learned.