Am I still entitled to my bonus if I am terminated?
If an employee has already earned the bonus then they are legally entitled to be paid the bonus, even if the termination takes place prior to the expected bonus payment date.
If an employee has only worked a portion of the year, they may still be entitled to a portion of the bonus, prorated for the fiscal period in which the employee worked; or otherwise, payment in lieu of that bonus.
Further, the employee may be entitled to compensation for lost bonus as part of a severance package if terminated without cause. Bonus is often an integral part of the employee’s annual remuneration and therefore it is not only fair, but legally required that the employer compensate the employee for lost bonus under the common law.
Employers often rely upon clauses in a contract of employment or incentive plan that state that the employee must be actively employed on the payout date to receive any form of bonus. Nevertheless, the employer may still be obligated to provide bonus for the period worked and as part of a severance payout. If the employer is denying bonus compensation on termination, speak with an employment lawyer about your rights.