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John, Employment Lawyer
Category: Employment Law
Satisfied Customers: 5570
Experience:  Exclusively practice labor and employment law.
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I was just off of my job. This was a part of a RIF and

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I was just laid off of my job. This was a part of a RIF and was not a termination for cause. I have been offered a severance package. The company has provided 20% of my compensation in the form of a semi annual bonus. This was not an individual bonus but was provided to all members of the team I worked in. The bonus is only available if the employee is employed on June 30 or Dec. 31. If the bonus were pro-rated to the date of my termination, I would stand to give up $7500. Is this legal?
Hi, My name is XXXXX XXXXX I’m happy to assist you with your question today. I'm sorry to hear about your termination of employment.

I understand your frustration that the bonus if not due, but there are no laws that would mandate a pro-rated payout of the bonus. Rather, bonus pay is completely a creature of contract; specifically the interpretation of the bonus contract. Thus, unless the contract that contains the terms of your bonus pay can reasonably be interpreted to allow a pro-rated payout, you would not have a claim for the pro-rated payout of bonus upon termination.

I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as it is the only way I am able to get credit for my answers. Thank you, XXXXX XXXXX wish you all the best with this matter.

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