Avoid unfair labour practices! Follow these 4 steps if you can't afford to pay bonuses
Bonuses act as an incentive for your employees based on the work they do for you. Many employees will look forward to their bonuses as they see it as a just reward for the work they put in for you.
But let's say you had a bad year financially, and you can't really afford to pay them their bonuses. What do you do?
There's a way to go about it, and if you don't you'll be accused on an unfair labour practice. Also, the employment relationship, between you and your employees could suffer terribly.
So, follow these 4 steps to deal with this scenario...
Step#1: Give advanced notice
Give all affected staff advanced notice, IN WRITING. Let them know that you're considering not paying them their bonuses based on adequate reasons.
Invite them to give their input, whether in writing or verbally, on the matter and to propose any solutions. This can make them feel a part of the decision making and a sense of responsibility over their wealth.
Protect yourself from labour-related problems by using this practical tool
The comprehensive Labour Law for Managers Loose Leaf Service gives you all the details you need for maximum protection in labour-related problems. You will find, for example:
Step#2: Give your employees time
Information on the problem areas managers have to handle in the workplace daily, and appropriate solutions;
Valuable advice for employers, based on the ever-changing legislation;
Sample contracts, dismissals and warning letters, etc;
Numerous practical checklists; and
It's important to give your employees time to process and consider the notice. Give them at least 24 hours in which to comment on it and come up with proposals for solutions.
Step#3: Consider the feedback
Genuinely look into the feedback of your employees and seriously consider the feasibility of each of their proposals.
Step#4: Inform employees of your decision
Inform your employees as to whether you agree and, or, disagree with their proposals and provide satisfactory reasons for why you say so.
*There are good reasons why you should pay bonuses
, but if you really can't afford it, after you've agreed to, then you're at risk.
But if you follow these steps, you can greatly reduce the chances of your employees accusing you of an unfair labour practice. You can also help maintain your employment relationship.
To learn more on employee bonuses, subscribe to Labour Law for Managers.