Performance Bonus

Situation:

Since 2011, a company gives to its employees performance bonus every December. A few years ago, the company transferred an employee to an affiliated corporation while still registered as an employee of the same company.

Problem:

The company no longer gives to the transferred employee the performance bonus since he is no longer functioning in the company. The affiliated corporation does not give the transferred employee a bonus since he is not a registered employee there.

Notes:

1. The company where the transferred employee is registered is neither an agency nor a BPO.
2. The transfer was initiated by the company's management.
3. The employee is not a sales agent. He is like any other employee who works behind a desk.

Questions:

a. Is the denial of the performance bonus illegal?
b. If you're answer to the above is "no", does it mean companies can legally manipulate its own system to prevent employees from receiving certain benefits?

I badly need an opinion. Please state if you find the scenario complicated.

Hi Bobby,

I guess this is regarding the query you ask previously in which no one answered.

Here is what I think about your case.

First, a Bonus is an act of generosity given by the employer to the employee. A bonus is not an obligation but a voluntary gift. Therefore, if a bonus is not given, employee cannot demand it because it is not his right.

Now, if the employee wants to get the productivity bonus, he must find a way to get an appraisal that would satisfy the condition for the bonus to be given.

Hope this helps.

@ mikos23

Thanks for the reply.

Follow up question: You mentioned that the bonus is a voluntary gift. But if the giving of bonuses is done consistently for years, doesn't it ripened to a company practice that can be demanded by the employees?