HomeHome SearchSearch MenuMenu Our productsOur products

Did you know: Even if you haven't guaranteed Paul's bonus, you could still be guilty of unfair labour practice if you don't pay him?

by , 04 November 2014
Let's say Paul's employment contract makes it clear that you don't guarantee he'll get a bonus.

Because of this, you assume you're covered and there's no way you could be guilty of unfair labour practice if you don't pay him.

Your assumption is wrong.

The truth is, even though you haven't guaranteed Paul's bonus, you could still be guilty of unfair labour practice if you don't pay him.

Here's why...


*********** Advertisement ************
 
Are labour laws and employee problems giving you a headache?

Do you want to be protected against CCMA claims?

The Practical Guide to Human Resources Management is complete, and up-to-date with the latest legislative changes and contains:
  • Over 76 templates and HR forms, complying with the Labour Relations Act (examples: Performance review template, leave form, loan applications, overtime policy and special leave policies, etc.)
 
  • Quizzes and tests (pre-interview questionnaire, 27 questions to ask in every interview, etc.)
 
  • More than 65 practical case studies and real life examples from our experienced HR specialists
 
  • Warnings and recommendations, so that you don't make mistakes
 
  • Action plans and checklists to make sure you don't forget anything
 
Click here for more details >>>
******************************************

 

Here's why you could still be guilty of unfair labour practice if you don't pay Paul's bonus

 
The Labour Law for Managers Loose Leaf Service explains that even if you haven't guaranteed your employee's bonus, you could still be guilty of an unfair labour practice if you don't pay him. For example, your employee meets all the requirements for payment of a bonus which you've communicated but you refuse to pay or only pay part of it, without a valid reason.
 
If your employee claims this, he'll be able to claim compensation at the CCMA if he can prove that:
 
  • He's entitled to receive this benefit; and
  • You acted unfairly by not paying or not fully paying the bonus.
 
It's that simple.

To protect yourself when it comes to bonuses, always clarify the following in your contracts

 
  • The exact circumstances under which you'll pay the bonus;
 
  • Whether you'll pay the bonus pro rata (a portion of his remuneration);
 
  • Under what circumstances your employee will forfeit his bonus (for example, excessive absenteeism or dismissal for misconduct);
 
  • Bonuses are at your discretion and employees don't have an automatic right to a bonus; and
 
  • Past practice doesn't constitute a right to future bonus payments.
 
PS: For more information on bonuses, check out the Labour Law for Managers Loose Leaf Service and avoid unfair labour practice claims.


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>