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Thread: Bonus implications if employee with 13th cheque entitlement resigns during the year

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    Bonus implications if employee with 13th cheque entitlement resigns during the year

    Does anyone have an answer to the following:

    An employee's contract says they are entitled to a 13th cheque. The employee resigns effective 30 September. 13th cheques are paid in December. Is the company obliged to pay him a pro-rata 13th cheque pay out upon his or her resignation? Thanks

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    Site Caretaker Dave A's Avatar
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    When did the employee commence employment?
    Does the contract specifically state the 13th cheque is paid in December?

    I'm moving this to the Labour Relations forum, even though I suspect it's actually an issue of contract law.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member sterne.law@gmail.com's Avatar
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    The contract and past practice will dictate.
    The provision makes it an entitlement, unlike a bonus.
    Establishing why it is paid will be integral.
    Is it a reward for a years service?
    Or to keep people through December etc.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Dave A (03-Aug-15)

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