Hi

Hi

I am 56 years old and work as a Project Coordinator for a company. I worked as a contractor for 2 years before being hired on permanently. When I signed my offer letter December 2019 it stated that I would be eligible for a yearly 5 % bonus. Fast forward my Manager and HR are telling me that a mistake was made on the offer letter and that there is no bonus plan attached to the position I have. One of the main reasons I accepted the job was for the bonus.

Can a company come back after you’ve signed an offer letter and change the terms almost 2 years later?

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  1. Anonymous

    No what you signed was essentially a contract who's terms you agreed to and they have breached that contract by not paying you the annual bonus.

    You can either have attorney write them a letter or you can draft one and direct it to the CEO, legal counsel and HR director.

  2. Elena

    Hello! Usually contracts have disclaimers that protect the organization and allow them to make changes to any contract without liability. I would re-read your entire contact in full to ensure this disclaimer is not in there. If there is no disclaimer, than you can definitely hold them accountable. Now, if no bonus program exists, than perhaps they can offer you a different benefit.

  3. Anonymous

    Read your contract and see what language they included to protect the company. Make sure you also get the HR and Manager's discussion in writing stating your position is not eligible for bonus. Once you have both you'll need to figure out your plan of action. If you are being told your position does not have any bonus potential and that's in writing which contradicts your contract - you need to find out how they plan to compensate you accordingly. I'd offer them 2 suggestions that would be acceptable to you and see what they say.

  4. Anonymous

    Being bonus eligible doesn’t mean you’d actually get one so they were covered and probably shouldn’t have brought it up.

    Unless it’s clearly outlined how to get a bonus somewhere (like in an employee handbook) and you meet those requirements but they are refusing to give you that bonus, I don’t see that there’s anything you can do.

  5. Anonymous

    An offer letter is not a contract and it typically says it is not. Bonuses are never guaranteed. I do find it pretty terrible that a company would reverse this if it’s in the offer letter. Most would honor it, even if it was a mistake. Are there other PM’s in the company? Were there defined goals on earning the bonus? Did you meet them? How is your performance? I would talk to them and see if they’ll come to a compromise. Unfortunately, getting an attorney and trying to pursue legal action will be costly, give you a bad reputation and likely make it difficult to continue your employment. A 5% bonus is not very much money. I’d try to see if they can offer an alternative. You will have to decide if this is worth leaving and finding something else.

  6. Anonymous

    Hm. I am not sure I can agree at all with what you have said. Bonus most certainly can be guaranteed, and in some cases absolutely are a significant part of a compensation package. There will be criteria associated to get them, but they are promises to be kept. I also find the comment about 5% just not being that much money. That's an opinion, and relevant to the salary. It could be quite a bit of money. For me, it would be.

  7. Anonymous

    If she makes $100k then 5% is only $5k, but with taxes is likely less than $3k. A lawyer will cost every bit of that.

    Bonuses are rarely guaranteed and offer letters are not employment contracts and typically say so in the letter and employee handbook.

  8. Anonymous

    When you are a sales person, it is not uncommon for part of your compensation to be a bonus. As I stated, there will be criteria. Maybe a lawyer will be every bit of that, and maybe they won't. The risk is you pay for the lawyer up front and decide. Finally, it doesn't matter what is in the employee handbook. What matters is what is in that employment offer and how it is written.

    Of course, this is why it is all so difficult.

  9. Anonymous

    You are absolutely 100% correct.

  10. Rhonda

    I think there are two questions here: Is it wrong? Is it illegal? While wrong, it may not be illegal. Obviously, they hired you permanently after two years because you did a good job. Interesting they are saying it is a mistake instead of you are ineligible. You could go after that and probably have a ground to stand on. Even if they think they are "right," it cost to defend yourself, so no company wants to have litigation. (they would be better off giving you the money and rewriting your offer letter).

    Now, let's dig deeper: Are you happy with your job? Do you want to stay there? Is there room to move up? If the answer to these questions is no, you have a different path. But, on the other hand, if the answer is yes, you have some good points and strategies made in these other comments.

    At 56, do you want to "fight" for this or concentrate more on being happy? Pushing back some may get you what you want short-term, but will it make you miserable for the long haul? Will it make your work environment stressful? And, do you really want to work for a company that would do this to you?

  11. surfnwrite

    Not sure what age has to do with this. Are you saying because she's 56 she should just suck it up and deal? That's a very ageist comment.

  12. Shelby C

    I disagree. It has a lot to do with it. I had the freedom to take much bigger risks twenty years ago than I do now. I think that is all she was implying.

    We invest in ourselves and our careers just like everything else. As we age, it is wise to not be aggressive with our risks and make more calculated decisions. No one would have judged her for saying that low risk bonds are better after fifty versus potentially high-yield and high risk investments. This is not different.

  13. Rhonda

    It was not meant to be a negative comment on age. The spirit of the comment is simply is this a fight you want to have or would you prefer to put this energy into being somewhere that treats you with respect. Being 55 myself, I value my time even more now. It’s a personal decision and I was only giving feedback to offer opinion which she may not have thought of. Which I thought was the purpose. Never implied she should “suck it up and deal”.

  14. Anonymous

    Contact an attorney that specializes in employment law, many attorney's will provide a free consultation. It's highly likely that your employer breeched your contract, and the contract is legally enforceable as written even if they made a mistake in the terms and didn't catch the mistake until after it was signed. It was signed and accepted as written by both parties and in most states is considered a legally binding contract.

  15. surfnwrite

    That is horrific. Made a mistake on an offer letter? Please. I'm not sure it's worth it to hire a lawyer but I would not want to work at such a place as they are likely to pull other BS before long.

  16. Anonymous

    Seek legal advice, there are many firms that offer a no charge initial consultation. They need to fulfill the terms of the original executed agreement- mistake or not. They can then change the terms of your employment.

  17. Anonymous

    am not a lawyer or HR specialist, but offer letters actually are written documented terms of employment that are signed, and can be legally binding. My understanding from the law courses I was required tot take said an offer ( any offer) that is accepted by default, is a contract. In this case, if it is written and signed, then unless there is a disclaimer, it will weigh heavily in your favor. My sister is an attorney, and she absolutely gets written terms of employment up front, as do I, and that shows up in my offer letters. And I have used it when policies at the company have changed without hesitation, and successfully.

    The fact that they made a mistake isn't your problem. It's theirs. They should have reviewed before they sent it to you. Your mistake was not having the conversation as to what the criteria were for that bonus, and then getting that placed in that offer letter. ( You negotiate.)

    I think, as others have suggested, is that the eligible term is probably what is going to catch for you, and other language in the offer letter.

    As they have also suggested, you will need to read all the details, see if there are any disclaimers, and decide what to do about it all.

    If that 5% is worth enough to you, and it was a contingency on you accepting the position, you will need to be open with them about that. If you were paid more as a contractor, for example, then you can point that out. Be prepared to show the value you have added, and what you have done.

    Ultimately, you have to decide if this is a job you like, and see potential growth in, and has other attributes that keep you happy. If this item is what it really comes down to, then you will likely be more successful by looking for other places of employment.

  18. Shelby C

    "Eligible for" does not equal a contract. There is no guarantee - especially if you are in an At Will/Right To Work State. I am sorry. I used to write employment contracts for a living.

  19. Leslie Wood

    I can provide some guidance as an HR professional.... Whether an offer letter is considered a legally binding contract will depend on what state you live in, however, in general, terms are allowed to be changed but typically not retroactively and they must be in writing.

    If I was in this situation and had made this mistake, I would explain the mistake was made, but my company would ensure you are made whole, and then we would talk about changes for the future, which would likely include a slight salary increase to compensate for the loss of the bonus.

    If you would like to reach out to me, I would be happy to take a look at your offer and come up with a couple of responses to your employer.

  20. Jesica Sartell

    Perfect reply, thanks!

    1. Accurate information from a credible source.
    2. Gracious offer to assist.

  21. Karen L

    Shelby is right. "Eligible for" or discretionary or based on criteria is not a guarantee. It doesn't mean you should not have the conversation with expectation of making you whole as another stated or a compromise.

  22. Goalsetter138986

    Any Offer if accepted by both parties of the contract is a legal binding and cannot be changed without mutual consent at later date

  23. K

    Nope, you have it in writing and you signed it and they never raised it til now. It's legal and they have to honour it. If you have a union, go see your rep if HR are being difficult about this. Whether you signed for the bonus or not, you signed and they have to honour it else it's breaking the contract.

  24. Jennifer Deby

    If you have it in writing, and it's signed by both parties, they have to honour it. Unfortunately, if they are trying to wiggle out of it and gaslight you, you will have to fight for it, and you will probably lose you job, or you won't want to work there after the fight anyway.

  25. ABRAHAMSAIBABA LINCON

    Exactly.

  26. kay Jack

    Exactly. It would be easier for all concerned for the company to just honor the 5%.

  27. Flossy

    Unfortunately, if you didn’t press it and get after your first year it’s probably not going to happen. Bonuses aren’t guaranteed either unless it was tied to metrics that happened and everyone else got the bonus like based on profit.

    It is not great business practice and you could pursue it and get last years. They will promptly put a new comp plan in front of you to sign that will clearly eliminate bonuses.

    In sales it’s common for a mid year change to comp plans if too many are on track to hit their plans and get bonuses.

    My advice is if everything else is good chalk this up as a lesson and move forward perhaps ask for a raise to compensate. Open your LinkedIn profile to be contacted by recruiters ( not the open to opportunity on your picture )

    This is a lesson to others ... walk through any questions on an offer letter and especially around bonuses to understand how, when, and the history on payouts.

    If this is a pattern of poor management, actively pursue other opportunities. Make sure to explain to your boss why you decided to leave. We work for fair compensation that we agree to terms.

  28. Liz Milne

    Ooh - if you've got it in writing, you have a much better case than word of mouth... Can you parlay their 'error' into a pay rise or other compensation that you'd be happy with? In general, I would say 'no', they don't have the right to go back on it, so I would really question why that offer was made if it wasn't meant to be included, and why they're only telling you now that things have changed.

  29. Anonymous

    Yes I have the offer letter in writing. The change was a verbal conversation between myself, management and HR. I dod go back and ask for it in writing but they still haven’t sent it yet

  30. Anonymous

    And they do this bait n switch all the time too.

  31. ABRAHAMSAIBABA LINCON

    No. You have legal options if you have original signed copy.

  32. Anonymous

    I do have the original signed copy

  33. Karen Gongaware

    Nope. Illegal!

  34. Deb Allen

    Keyword in the offer letter was "eligible". That still allows the company oversight on whether or not it will actually be granted. Also, does the offer letter have a statement that says "XCompany reserves the right to update/change compensation plans...yadda yadda"? If so that is how they cover changes or updates to what you are paid.

  35. Anonymous

    Yes this is so accurate .My former company used the "eligible " part to get out of certain things .

  36. Anonymous

    No. It only says “subject to “ in the offer letter.

  37. Divya

    I hope you have the original documents that you signed at the time of hiring. It mentions the conditions about how and when you'll get the bonus like is it tied to an individual, group, or department performance metrics; are there any other statistics it is tied to?

    Did they give you any other reason for not giving the bonus besides that they made a mistake? I am assuming you don't have their reasoning in writing? And did they made you sign any revised documents which have removed the bonus clause? It seems the company made some cost-cutting decisions and they are trying to implement it in an unprofessional, unethical way. Just saying that they made a mistake, is not right.

    However, depending upon the answers to the above questions, you may or may not be able to do much about it.

    If the company can't operate ethically, it's better to move on and find a different opportunity. Ensure you do a retrospective of this situation and ensure to implement the lessons learned in your next opportunity; for example, ask questions about bonuses, conditions, metrics, etc., make sure you get everything in writing.

  38. Anonymous

    Hi

    They did not make me sign a new doc. Said they would but haven’t sent it over and it’s been months now. They just said that the position I’m in isn’t tied to the bonus plan. They only said that I signed my offer letter with the bonus plan was a mistake on their end.

  39. Valerie Rieger

    They got you with the "eligible". Which doesn't mean "entitled" or "guaranteed".

  40. Anonymous

    Yes..my old company played this game with people.

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