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About Timmy Chou
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I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > Did not recieve bonus after termination

Arbitration/Mediation - Did not recieve bonus after termination


Expert: Timmy Chou - 4/21/2009

Question
I'm asking this question on the behalf of my husband. He was terminated from his job. The site manager said that he was not entitled to his bonus because he was terminated even though he had earned it the month prior. I was wondering if we have a case against the company to get his bonus, or what exactly we should do.

Thank you we will take any help we can get :)

Answer
Thank you for your question!

As I always note to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is very typical and can be considered a "classic" HR dispute presentation.  I cannot mediate this with you alone but I can respond to your question from my business consulting experience.

Note that this may have legal factors and you may wish to consult a labor attorney.

I often tell people that it may be useful to consider that right and wrong are not always the most useful places to begin in dealing with these sorts of problems.  For most large organizations there is only expedient and inexpedient.  Also, there is a cost to exacting justice and the costs can be quite high.  Remember that your person-hood and your work are not even remotely related and that the most successful people at work are often the least successful with others since they have often become successful on the bodies of those they have slain.

You are dealing with authority figures or owners who are only interested in the path of least resistance in terms of how they manage the business.  I'm guessing they could care less about you so don't put too much investment in your position.  Your husband was terminated for business reasons and now you must create a business reason to deal fairly with you.

Generally speaking you cannot be retroactively denied compensation you have earned, however there may be employment terms and conditions which allow the practice.  Please begin by documenting a very careful chronology of events as they have occurred.  Names, dates and locations.  Put things in writing in a careful chronology.  In most states you can be fired for just about any reason without a problem.  These are known as "right to work" states.  However, you cannot be treated differently than other workers nor can your contract be violated, nor can policies and procedures of the company be overlooked.

You must get copies of any employment contracts or policies and procedures and begin to review these.  If you have a clear roadmap for pursuing a grievance, by all means follow that procedure, but now is the time to send a demand letter by registered mail to the company, stating your grievance and any policy violations (cite the policy) and your demands for satisfaction.  

Many states have Employment Commissions or other employment offices where you can file a complaint for free.  You should contact them right away and file a complaint.  You may also be able to file a complaint with the US Dept of Labor.  Find their offices.

If you have Union, industry or trade advocacy organizations available to you that can assist you try to contact them.  If you have journalists or press options available, try to contact them.  If you have representatives or senators or local state or municipal elected officials you can contact, do so.  Your story may play well as an unscrupulous company looking to offload workers and avoid retention or termination responsibilities.

Be sure to send copies of any demand letters and any other proof or correspondence to all these people when you contact them and note in the letter all the people you are copying.  Your company must see that you are not going away and that it will cost a lot more to deal with all the problems you will cause them for their practices and then they will make a business decision and settle fairly with you.  

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:
  Confidential, no public record
  Limited exchange of documentation, information
  Quick, don't have to wait for a court date
  Arbitrators have expertise in the subject matter and are trained in conflict resolution
  Cheaper than litigation
  Preserves business relationships

Negatives of Arbitration

  It's a compromise, no 100% winner
  Complex arbitration can be costly
  If not satisfied, may litigate the arbitration procedure
  Poor results with an unskilled arbitrator
  Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

  Neutral mediator can objectively suggest alternatives not considered before
  Parties are directly engaged in negotiating the settlement
  Can be quicker than litigation
  Less costly than litigation
  Preserves business relationships
  85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

  may not reach a binding decision
  unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

  a clear winner and loser
  uses a prescribed set of procedures
  more predictable outcomes
  is final

Negatives of Litigation:

  waiting for court dates can do more harm
  usually more expensive than mediation and arbitration
  part of the public record

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