Is it illegal if the company fails to pay year-end bonuses or shrinks them at the end of the year? Lawyer Li Yusheng explains the legal regulations on year-end bonuses!

The company has not issued a year-end bonus! ?

As the end of the year approaches, employees are most concerned about year-end bonuses. However, some companies may shrink their sales at the end of the year or even not make annual payments due to poor operations. Is this illegal? What are the legal provisions regarding year-end bonuses?

Lawyer Li Yusheng explains the legal provisions related to year-end bonuses

🔸It depends on whether the company has an agreement with employees on year-end bonuses
If the employer and employee have an agreement in the labor contract or the employer has formulated relevant provisions on year-end bonuses in the company's work rules, the employer must abide by and perform them, otherwise there is a possibility of breach of contract.
🔸Are there any standards for year-end bonus agreement?
Agreements on year-end bonuses, such as upper or lower limits, or whether one needs to work for a certain number of years (for example, one year) to receive year-end bonuses, etc., are not regulated by the Labor Standards Act and are matters that can be agreed between the employer and employee on their own.
🔸Labour and management have agreed upon the situation
If the company has no profit or loss due to the epidemic or other reasons, and the management wants to stop or reduce the year-end bonus, it must negotiate with employees and obtain their consent before making adjustments.
🔸No agreement between labor and management
If the employer and employee have not reached an agreement on the year-end bonus, then the employer has no legal "obligation" to pay the year-end bonus. It is up to the employer to decide whether to pay the year-end bonus.
🔸How can workers protect their rights and interests?
If the amount and payment method of the year-end bonus are stipulated in the labor contract, but the company fails to pay it as agreed, it is a breach of contract. Employees can apply for mediation at the local labor bureau, or call the 1955 labor consultation and grievance hotline of the Ministry of Labor for assistance.

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