Bonus based on years of service & Tupe

Discussion in 'General Chat' started by zAndy1, Jun 9, 2015.

  1. zAndy1

    zAndy1
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    Hi, hoping there's someone with experience in this field that can offer some advice. Everyone in the company I work for is about to receive a bonus (one time award) which is being calculated as 1 weeks salary per year of completed service at said company. We have been advised of the amount and it has been calculated with the years of service as the number of years since we TUPE transferred across to said company. We are wondering if we have any grounds for challenging that and saying they should have used our continuous years of service including years worked at the company we TUPE'd from as that is legally our years of service and is what is used for determining things like long service awards etc. For some people we're talking about a difference of around £20000 so this is obviously quite a serious matter. Does anyone with relevant experience in this field know if it's worth us challenging the calculated amount and insisting they use our full years of service? If it helps and is relevant at all this is a special one time award not a bonus scheme that existed at the time of transfer so the question really is whether the company can use one value for years of service for this (the years since we tupe'd to them) and another for things like long service awards & redundancy payments etc which is based on the starting date as in our terms and conditions of employment being the date we started with the company we TUPE'd from?

    Cheers
     
  2. Desmo

    Desmo
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    So is this a contractual bonus or something where the company has just decided to be "nice"?
     
  3. alan280170

    alan280170
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    The question is, that if it is a special one time bonus, would have you got that from the company that you TUPE'd over from. I understand that everyone wants to get as much as possible, very grey area for me.

    Complain and rock the boat, may never have any one time bonus again, as I assume it is not in your contract and they are being nice.
     
  4. Member 581642

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    It could be that the company couldn't afford the one off bonus if the tuped years were included and then would have to cancel the bonus.

    Seems a bit of ingratitude to rock the boat over a one off goodwill gesture.
     
  5. zAndy1

    zAndy1
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    Not contractual just a one off gesture due to a certain company anniversary
     
  6. zAndy1

    zAndy1
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    Oh they can afford it that's not an issue
     
  7. zAndy1

    zAndy1
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    I tend to agree but one of my colleagues is determined to argue the case it should be based on his total length of service which is over 40 years, in a way he's got nothing to lose so I cant blame him for disputing it but I tend to look on it as something I didn't expect to get and be grateful I'm getting anything, I've got more of a grudge over the fact I'm gonna lose over half of it in bloody tax and NI :(
     
  8. Member 581642

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    Ok "afford" may not be the right word, "have it budgeted for" is probably more appropriate.

    Is it now contractual that they will be paying it ?, if not dont be suprised if they withdraw it or alter the terms should your colleagues dispute the amount.
     
  9. Desmo

    Desmo
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    If I were the person deciding to give the bonus I'd carefully consider doing it again in the future. Seems awfully ungrateful to fight for more.

    Having said that, I'm coming from the angle of a small business but it still feels wrong to "demand" it even from a large company.
     
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  10. zAndy1

    zAndy1
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    We've all had letters confirming hope much we're going to receive and been told its gonna be paid by next Monday, I honestly don't think that will change, we're talking about 300,000 employees here so the odd one or two rocking the boat isnt gonna change anything...
     
  11. Member 581642

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    Thats good then and probably now contractual.

    I suspect that if the boat is rocked they will change the method of calculating it next time, still seems ungrateful to me though. Looks like they were trying to be fair when calculating the bonus but for some that just isnt enough.

    Out of interest what were the circumstances of the TUPE ?
     
  12. alan280170

    alan280170
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    I guess they were bought over by a bigger multi national company, as the OP says they have 300,000 employees which leads me to believe they are a fortune 500 company, maybe an major oil company?
     
  13. Member 581642

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    .. or bought a failing or failed company, I was just interested as maybe would make my opinion slightly different
     
  14. alan280170

    alan280170
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    True, but they bought it for a reason, doesn't make any difference in my thinking, whether it was a successful company being gobbled up by a bigger competitor or not.

    After seeing some other info, I assume the the bonus is for some anniversary (maybe 100 years or something). Now if I was an employee of the original company, I would get x amount for my years, but if I am a TUPE'd employee I assume you are getting the years since being taken over? Seems logical if not fair in some eyes.
     
  15. Member 581642

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    I agree legally and for TUPE but if the earlier company had failed and the larger company took on the employees there is a slight difference in terms of the "fairness" as the employees avoided redundancy.

    Moot point really and just was interested in the circumstances
     
  16. zAndy1

    zAndy1
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    TUPE reason was purely down to previous company losing a contract to new company nothing complicated really
     
  17. Member 581642

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    That sounds complicated
     
  18. Greg Hook

    Greg Hook
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    Why would the company pay the bonus prior to them taking over? Surely the bonus is because they have done well from that date?

    I can understand it is a lot of money in some cases, but there is no law that they have to pay a bonus at all (if it isn't in your contract) let alone how much that bonus should be.
     
  19. Member 581642

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    You can see why they asked as its based on years of service, which TUPE covers for other elements of employment law. Though i think they are just chancing their arm
     

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