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

[Connie K]

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

[Dave A]

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.

[sterne.law@gmail.com]

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.