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Follow these four steps if you can't pay bonuses this December

by , 03 November 2014
If there's one thing your employees are waiting for with bated breath, it's their end of year bonuses.

But what if you've been hit hard by the tough economy and won't be able to pay bonuses this December? But it's written in their employment contacts that they will get a 13th cheque or you've set a precedent by paying bonuses?

Simply follow these four steps so you can avoid unfair labour practice claims when not paying bonuses.


Here are the four steps you must follow if you can't afford to pay bonuses

 
Experts behind the Labour Law for Managers Loose Leaf Service outline the steps you must take if you can't afford to pay your employees bonuses if you guarantee these:
 
Step #1: Notify affected employees in advance
 
You must give affected staff advance notice in writing. Make it clear that you're considering not paying bonuses and state your reasons for this decision.
 
In addition, invite employees to give you their input and any solutions they might have, either verbally or in writing.
 
Step #2: Give your employees time to consider the notice
 
Give your employees at least 24 hours to comment and come up with their own solutions and proposals.

 
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Step #3: Consider your employees' feedback
 
Carefully and fully consider your employees' suggestions and comments.
It's crucial that you investigate options that may have merit and could lead towards solving the problem.
 
Step #4: Communicate your decision
 
Finally, let your employees know why you disagree or agree with their suggestions and comments.
 
Be warned! If you don't follow these steps, your employees could bring an unfair labour practice claim against you. This means, not only will you have a labour case to deal with, but your relationship with your employees will suffer as well.
 
To avoid this fate, follow these four steps if you won't be able to pay bonuses this December.
 
PS: For more information regarding bonuses, check out the Labour Law for Managers Loose Leaf Service.

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