Was I laid off? Do I still have my year-end bonus?
2025 01/14
For the human resources market, 2024 is an unstable year, with constant calls for "layoffs," "optimization," "cost reduction," and "efficiency improvement." In this environment, some people are forced to leave their positions early. Even some friends will "celebrate with a big gift package" on the last day of 2024. At the end of the year, for those who have been laid off, the most concerning thing is undoubtedly the year-end bonus. Do I still have a share?
Fang started working at D Company in Shanghai in 2011 as a senior manager in a certain department. In October 2017, D Company adjusted its organizational structure and decided to abolish the department and position where Fang was located. Afterwards, both parties engaged in negotiations for over two months on matters such as changing the labor contract, but were unable to reach a consensus. On December 29, 2017, D Company unilaterally terminated the labor contract on the grounds of significant changes in objective circumstances. Fang subsequently filed labor dispute arbitration and litigation, demanding that D company restore labor relations and pay 2017 bonuses. D Company advocates that the "Employee Handbook" clearly stipulates: "The year-end bonus is calculated and paid according to the company's policy, based on the company's performance and the employee's performance, provided that the employee has joined before October 1 of the current year. If the employee leaves before the bonus payment month, they cannot enjoy it." However, D Company's practice is to pay the year-end bonus for the current year in March of the following year. Fang resigned on December 29, so D Company should not pay Fang's 2017 year-end bonus.
After trial, the court believes that the current laws and regulations do not mandate how year-end bonuses should be distributed. Employers have the right to independently determine whether bonuses should be distributed, the conditions for distribution, and the standards for distribution based on their own operating conditions, employee performance, etc. However, the distribution rules formulated by employers should still follow the principle of fairness and reasonableness. Whether employees who have already resigned before the year-end bonus can receive the bonus should be comprehensively considered based on various factors such as the reason, time, work performance, and contribution to the unit. The rules and regulations of the employer stipulate that employees who resign before the year-end bonus is distributed cannot enjoy the year-end bonus. However, if the termination of the labor contract is not due to the unilateral fault or voluntary resignation of the employee, and the employee has completed the annual work tasks, the employer cannot prove that the employee's work performance and performance do not meet the standards for the year-end bonus distribution. If the employee who resigns before the year-end bonus distribution claims that the employer pays the year-end bonus, the people's court should support it. In the end, due to D company's failure to provide evidence to prove that Fang's 2017 work performance and performance did not comply with the year-end bonus distribution regulations, the court ruled in favor of Fang's request and ordered D company to pay Fang the 2017 year-end bonus.
According to the above case, it can be seen that employees who have been laid off or optimized also have the right to claim year-end bonuses from their employers based on their working hours, performance, and contributions to the company. If the company refuses to pay, they can protect their legitimate rights and interests through legal means such as labor arbitration and litigation. But at the same time, in order to ensure that one's request is supported, attention should also be paid to collecting relevant evidence, such as labor contracts, employee manuals, entry dates, job positions, performance, company regulations on year-end bonuses, and records of past year-end bonus payments.
Fang started working at D Company in Shanghai in 2011 as a senior manager in a certain department. In October 2017, D Company adjusted its organizational structure and decided to abolish the department and position where Fang was located. Afterwards, both parties engaged in negotiations for over two months on matters such as changing the labor contract, but were unable to reach a consensus. On December 29, 2017, D Company unilaterally terminated the labor contract on the grounds of significant changes in objective circumstances. Fang subsequently filed labor dispute arbitration and litigation, demanding that D company restore labor relations and pay 2017 bonuses. D Company advocates that the "Employee Handbook" clearly stipulates: "The year-end bonus is calculated and paid according to the company's policy, based on the company's performance and the employee's performance, provided that the employee has joined before October 1 of the current year. If the employee leaves before the bonus payment month, they cannot enjoy it." However, D Company's practice is to pay the year-end bonus for the current year in March of the following year. Fang resigned on December 29, so D Company should not pay Fang's 2017 year-end bonus.
After trial, the court believes that the current laws and regulations do not mandate how year-end bonuses should be distributed. Employers have the right to independently determine whether bonuses should be distributed, the conditions for distribution, and the standards for distribution based on their own operating conditions, employee performance, etc. However, the distribution rules formulated by employers should still follow the principle of fairness and reasonableness. Whether employees who have already resigned before the year-end bonus can receive the bonus should be comprehensively considered based on various factors such as the reason, time, work performance, and contribution to the unit. The rules and regulations of the employer stipulate that employees who resign before the year-end bonus is distributed cannot enjoy the year-end bonus. However, if the termination of the labor contract is not due to the unilateral fault or voluntary resignation of the employee, and the employee has completed the annual work tasks, the employer cannot prove that the employee's work performance and performance do not meet the standards for the year-end bonus distribution. If the employee who resigns before the year-end bonus distribution claims that the employer pays the year-end bonus, the people's court should support it. In the end, due to D company's failure to provide evidence to prove that Fang's 2017 work performance and performance did not comply with the year-end bonus distribution regulations, the court ruled in favor of Fang's request and ordered D company to pay Fang the 2017 year-end bonus.
According to the above case, it can be seen that employees who have been laid off or optimized also have the right to claim year-end bonuses from their employers based on their working hours, performance, and contributions to the company. If the company refuses to pay, they can protect their legitimate rights and interests through legal means such as labor arbitration and litigation. But at the same time, in order to ensure that one's request is supported, attention should also be paid to collecting relevant evidence, such as labor contracts, employee manuals, entry dates, job positions, performance, company regulations on year-end bonuses, and records of past year-end bonus payments.
