Law

Who the final say the year-end bonus?

2026-02-03   

At the end of the year, whether to distribute year-end bonuses and how much have been distributed has become a hot topic among professionals. Some people are eagerly looking forward to this money to reward themselves for a year of hard work, while others fall into anxiety or loss because of it, "the promised bonus suddenly shrinks" or "the money that should have been given is delayed"... Similar complaints are not uncommon. Is the final award of that year a "freely adjustable incentive for enterprises" or a "deserved reward for workers"? Should it be "the boss gives the final say orally" or "written clearly in black and white"? Behind this series of issues is the game between labor and management on the boundary of rights and obligations. Clarifying this boundary is the key to resolving disputes over year-end bonuses. Can the year-end bonus be deducted immediately if the performance does not meet the standard? In October 2022, Shao was hired by Deshun Company as a property consultant. On the day of employment, both parties signed a labor contract. The contract clearly stipulates that Shao's labor remuneration consists of two parts: basic salary and house sales commission. The commission is calculated based on a certain proportion of the transaction amount of the sold house and is paid on a monthly basis. This agreement filled Shao with enthusiasm, and he devoted himself wholeheartedly to sales work. With his professional skills and unremitting efforts, he facilitated multiple housing transactions and earned considerable monthly commissions. However, starting from January 2023, Shao discovered that the company's salary distribution method had quietly changed. The monthly calculated sales commission, the company only actually distributed 80% of the housing sales commission, and split the remaining 20%: 10% as the year-end bonus, and the other 10% to be distributed after the housing is delivered. In May 2024, Shao resigned from Deshun Company. Afterwards, he applied for labor arbitration and demanded that Deshun Company pay him the year-end commission reserved at a rate of 10% from January to December 2023, totaling 27000 yuan. The labor arbitration supported his request. Deshun Company is dissatisfied and has filed a lawsuit with the court, requesting a change in the ruling that it is not required to pay Shao's 10% year-end bonus. Deshun Company believes that it will implement a new salary structure system in 2022, which stipulates a 10% commission as the year-end bonus. However, the company's signing rate did not reach 80% that year, so it was decided not to issue the year-end bonus. The court believes that based on the monthly commission table submitted by Shao and the statements of both parties, the so-called year-end bonus is essentially only reserved by Deshun Company from Shao's monthly housing sales commission. But the company did not provide evidence to prove that Shao agreed to use this reserved commission as the year-end bonus for assessment. Therefore, the court believes that Deshun Company's claim for not paying Shao's year-end bonus, which is a 10% year-end reserve commission, lacks factual basis and is not supported. In the end, the court ruled that Deshun Company should pay Shao a year-end bonus of 27000 yuan for the year 2023. Can I just say I don't have my year-end bonus after signing the resignation agreement? In May 2024, Cao joined Zhensheng Company and engaged in cost management work. The two parties signed a labor contract with a term of December 31, 2024. The contract specifies an annual target performance bonus of 41800 yuan and provides detailed explanations for the calculation and distribution rules of the bonus: the calculation period is from January 1st to December 31st of the Gregorian calendar each year, and the distribution time is set before the end of the lunar calendar year. For employees who joined before November 1st of that year and worked until December 31st, the actual number of months worked shall be determined; For employees who resign before December 31st of the current year (whether voluntarily or involuntarily), no payment will be made. On December 15, 2024, Cao submitted a resignation application. On December 18 of the same year, both parties signed a termination agreement, agreeing to terminate the labor relationship on December 18, 2023. The unsettled salary of 62600 yuan already covers all expenses that Zhensheng Company should pay to Cao, including but not limited to labor remuneration, overtime pay, year-end bonus, etc. After the agreement was signed, Zhensheng Company paid the amount. Afterwards, Cao learned from other employees in the company that the year-end bonus for 2024 had been distributed in February 2025. So, he believed that the termination agreement signed by both parties stated the date as December 18, 2024, and included the unsettled compensation, but the year-end bonus had not yet been calculated at that time. Moreover, the content of the agreement significantly increases its obligations while reducing the company's responsibility, and the provisions regarding year-end bonuses should be considered invalid clauses. In order to request the year-end bonus, Cao has communicated with Zhensheng Company multiple times, but the company has refused his request on the grounds that both parties have signed a resignation agreement and all payments have been settled. So Cao filed a lawsuit with the court, requesting that Zhensheng Company pay him a year-end bonus of 41800 yuan. During the trial, Zhensheng Company submitted the labor contract, termination agreement, and payment voucher signed by both parties, claiming that the agreement was voluntarily signed by both parties, the content was legal and valid, and the company had fulfilled all payment obligations and should not pay additional year-end bonuses. After the court trial, it was found that the termination agreement signed by both parties did not violate any mandatory provisions of laws and administrative regulations; And Cao did not provide evidence to prove the existence of fraud, coercion, significant misunderstanding, or obvious unfairness, the agreement should be deemed valid. Zhensheng Company has fulfilled its obligations as agreed in the agreement and ultimately rejected Cao's request for the company to pay the year-end bonus. Can the benefits of the red envelope that has been issued for 15 years change at will? In December 2007, Li joined Xiangyu Company as a kitchen worker, responsible for preparing employee meals and maintaining kitchen hygiene. Since 2008, both parties have signed a one-year labor contract annually, which only stipulates core terms such as basic salary, working hours, and job responsibilities, and does not involve any content related to year-end bonuses. What warms Li's heart is that from the first year after joining, every year at the end of the lunar calendar, the company will give him a thick cash red envelope. This year-end red envelope, which has been persisted for 15 years, is not only an additional income, but also a special "year-end ceremony" in Li's heart, allowing him to feel the company's humanistic care and work with peace of mind for 15 years. However, in the second half of 2022, Xiangyu Company decided to relocate its business address due to business adjustments. The new address is far from Li's residence and commuting is inconvenient. When renewing the labor contract, the two parties had disagreements on issues such as work location and transportation subsidies, and ultimately failed to renew. Li officially resigned at the end of that year. After resigning, Li has been hoping that the company will distribute year-end red envelopes as in previous years, but there has been no news for a long time. It was not until after the Spring Festival in 2023 that he learned that the company had not given him this red envelope that year. This made Li feel very cold. He believed that he had been working in the company for 15 years and could receive red envelopes every year, which had already become a tradition. The company had no reason to unilaterally cancel the contract because it was not renewed. Subsequently, Li applied for labor arbitration, but was not satisfied with the arbitration result. Therefore, he filed a lawsuit, demanding that Xiangyu Company pay him economic compensation, 2022 year-end bonus, and unpaid annual leave salary. In court, Li passionately stated this "tradition" that has lasted for more than ten years, and submitted some signed records of receiving red envelopes that year and testimony from colleagues. After the court hearing, Li's claims for economic compensation and unpaid annual leave wages were supported. However, the court held that there was no agreement between Li and Xiangyu Company to pay the year-end bonus, and Xiangyu Company did not have corresponding rules and regulations. The cash red envelopes previously issued were only benefits provided by the company independently, and were not mandatory obligations at the legal level. In addition, changes in the company's operating address may be accompanied by adjustments in operating costs, and it has the right to decide whether to issue and the amount to be issued based on the actual situation. The final rejection of Li's request for payment of year-end bonus. Establishing transparent rules to reflect humanistic care. At the end of each year and the beginning of the year, "Has the year-end bonus been distributed? How much can it be distributed?" always touches the nerves of professionals. Someone felt the warmth of the company and strengthened their belief in moving forward together due to a generous bonus; Some people have fallen into exhaustion and disappointment in safeguarding their rights due to unfulfilled agreements and interrupted welfare. This seemingly simple concern is actually a game of rules, rights, and trust, reflecting the deep problems of vague rules and imbalanced rights and responsibilities. In reality, the root of many labor disputes lies in the "ambiguous zone" of rules and the "lack" of trust. Some employers have reserved too much "flexibility" in their salary structure design, treating year-end bonuses as a cost control item rather than a part of institutionalized compensation. This may allow employers to flexibly control expenses in the short term, but in the long run, it not only undermines the fairness of internal salary distribution, but also erodes employees' trust in the company, and may even pose legal risks. From the perspective of workers, the bumpy road to safeguarding their rights often stems from a weak sense of self-protection. Many people are accustomed to "verbally asking and mentally remembering", but they are afraid to implement the agreement in black and white, and neglect to retain key evidence in their daily work. Once a dispute arises, one often falls into a passive position due to "insufficient evidence" or "missing the deadline", and the road to rights protection is full of both time and psychological pressure. Resolving the dilemma of year-end bonus disputes begins with a shift in mindset. Employers should write detailed rules for the distribution of year-end bonuses, clearly define assessment criteria, and embed the concept of "agreement is responsibility" into their business philosophy. This is more cohesive than explaining afterwards. More importantly, it is necessary to establish a more caring mechanism for resignations. For different scenarios such as active resignations and passive optimizations, reasonable welfare connections can be provided based on employees' on-the-job contributions. This warmth can not only handle labor relations properly, but also establish a good employer brand for the enterprise, impress current employees, and attract potential talents. Workers should also proactively confirm agreements and retain vouchers to prevent potential problems. After all, employers rely on their employees to maintain stable performance, and employees rely on their employers to receive returns. The weight of the year-end bonus is not just the amount on paper, but also the dignity of the rules and the thickness of trust. When employers treat the contributions of every worker with transparent rules and an honest attitude; Only when workers are rational and fully prepared to safeguard their own rights and interests can the standardized development of labor relations be promoted. When both parties abandon game thinking and move towards each other, this' year-end surprise 'can truly carry the value of motivation and humanistic care, achieving a two-way rush between the enterprise and employees. (New Society)

Edit:Yingying Responsible editor:Yiyi

Source:https://www.rmfyb.com/

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