Mzwakhe* says he’s been working for his company for two years now, and still hasn’t received his annual bonus. He wants to know what’s going on and if he can do anything about it. Scorpion Legal Protection discusses what the law says about the payment of bonuses.
Scorpion Legal Protection’s advice
It’s important to note that our labour laws are silent on the issue of bonuses. This means that whether or not you are paid a bonus is completely up to your employer. So if your employer does not currently pay bonuses of any sort and there is nothing in your employment contract that indicates that you are entitled to be paid a bonus, there is no law that says the employer must pay one, and the employer is not guilty of any unfair labour practice.
There may be some situations where the employer is forced to pay an annual bonus due to certain bargaining council agreements and collective agreements. Employers have to respect these agreements and comply with them.
If your employer was paying you a bonus and then all of a sudden stopped, then the situation could be slightly different because the employees may now come to expect the payment of the bonus as a right or entitlement; but nothing is guaranteed unless it’s in your employment contract. The terms and conditions applicable to the payment of bonuses must be specifically and clearly stated in your employment contract.
There are three kinds of bonuses:
- 13th Cheque - this bonus is a payment of gratitude by the employer to the employee in recognition of a job well done, or if you like, going the extra mile.
- Performance bonus - usually paid for good performance. This is usually a percentage of the employee’s salary or wages. A performance bonus can also be paid as a lump sum to a department, and then divided in equal amounts among employees in that department.
- Production bonus – based on production measured against company targets.
Tips:
- Your employment contract lays out the terms and conditions of your employment, so it’s the best place to start if you think you’re owed money by your employer.
- Bonuses are not a right.
If you have a query, follow us on our Facebook page and ask your question during our next Live Q&A (every first Thursday of the month).
* This is only basic advice and cannot be relied on solely. Names have been changed to protect identity.