Forums
Incentive payment to terminated employees
Benefits & Compensation
Incentive payment to terminated employees
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We are redesigning our sales incentive plans, and a question has come up regarding whether we are required to issue a bonus to an employee no longer with the company? So I pose the question: if an emp
0
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId36848
1
|
Incentive payment to terminated employees
posted at 12/21/2010 9:41 AM EST
|
|
Posts: 2
First: 12/21/2010
Last: 12/22/2010
|
We are redesigning our sales incentive plans, and a question has come up regarding whether we are required to issue a bonus to an employee no longer with the company? So I pose the question: if an employee leaves the organization, are we required to pay out the incentive? We have always operated under the "must be present to win" concept, which was stated in the Plan documents, but want to be sure as we rewrite the Plan. Thank you! If it helps, we are a RI company with employees working in RI, MA and CT.
|
2
|
Incentive payment to terminated employees
posted at 12/21/2010 11:36 AM EST
|
|
Posts: 562
First: 11/12/2009
Last: 9/14/2011
|
I think Connecticut might be the thorn in your side here. I believe that there was a ruling in Connecticut that so long as the performance requirements for a bonus were earned, the employee is entitled to receive a bonus regardless of whether or not they were still employed.
|
3
|
Incentive payment to terminated employees
posted at 12/22/2010 2:43 AM EST
|
|
Posts: 2
First: 12/21/2010
Last: 12/22/2010
|
Thank you for the reply. I vaguely remembered an issue with CT that came up in a past "career life." The reminder is a big help.
|
Daily Q&A
How to Address Flagging Motivation?
How do I increase motivation levels in the department? How do I brand my business unit as an attractive place to work? I have top-notch IT professionals in my business unit who feel they are "children of a lesser God" because they are non-billable resources and do not get plum postings abroad, nor the glamour that goes with them. As a result, their motivation suffers.
—-- Feeling Their Pain, human resources generalist, software/services, Mumbai, India
Read Answer
Stay Connected
Join our community for unlimited access to the latest tips, news and information in the HR world.