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Deduction on Bonus due to lateness

Lim
Member
Wed, 23 Jul 2014 06:25:33 PM  (Last updated: Thu, 24 Jul 2014 11:22:47 AM)

Hi,

Company has recently declared a one-month bonus to all staff after certain sales target being achieved. No communication at all on the deduction of bonus.

Right before the bonus payout day, HR sent out a memo saying bonus will be deducted based on how many times of lateness during first half of the year (Jan to Jun 2014). Worst still the deduction percentage of the bonus is equaled to frequency of lateness. For those employees with the frequency of lateness less than 10 times, they will be excluded from the bonus deduction. Example, if a staff had lateness frequency of 20 times over the above mentioned period, his / her bonus will be deduction by 20%.

Is this a rightful thing to do?

Please help.

Thanks.

Iszkandar
Member
Thu, 24 Jul 2014 08:52:10 AM
Originally posted by Lim on Thu, 24 Jul 2014 11:22:47 AM

Hi,

Company has recently declared a one-month bonus to all staff after certain sales target being achieved. No communication at all on the deduction of bonus.

Right before the bonus payout day, HR sent out a memo saying bonus will be deducted based on how many times of lateness during first half of the year (Jan to Jun 2014). Worst still the deduction percentage of the bonus is equaled to frequency of lateness. For those employees with the frequency of lateness less than 10 times, they will be excluded from the bonus deduction. Example, if a staff had lateness frequency of 20 times over the above mentioned period, his / her bonus will be deduction by 20%.

Is this a rightful thing to do?

Please help.

Thanks.

Hi Lim, 

The one thing about bonus that staff needs to understand is the 'prerogative of the Company' clause. That simply means it is the discretion of the Company to impose any terms and condition with regards to the payout. Even if it was not announce prior to the payout, the Company still reserve the rights to implement certain 'guidelines' in doing so.. 

DnH
Member
Thu, 24 Jul 2014 11:22:47 AM

Bonus is usually discretionary and as such the Company has the discretion to determine how much bonus you get and what is the criteria. The only exception is a contractual bonus where they state in the contract they will give you a fixed bonus sum every year (eg: 13th month salary)

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