Recruitment referral scheme

On the face of it they don't qualify so the grievance is bound to fail (if the rules are as clear as you say)

Have you confirmed what conversation the Senior manager is reputed to have had and why? If they had the authority / status to agree an exception to the rules and committed to it then you may be better to pay....

He mentioned we might have paid it. But then the recruitment manager confirmed we wouldn't paid as he was leaving. If he left in the same month he was due to this bonus, should we had paid or not?

O so it was the employee who referred the candidate who left not the candidate themselves?

Its down entirely to your rules around if people need to be employed when bonus is paid (for most employers they would need to be)

O so it was the employee who referred the candidate who left not the candidate themselves?

Its down entirely to your rules around if people need to be employed when bonus is paid (for most employers they would need to be)

Thanks for your reply Keith. Yes the employeed who referred the canddate left and we received yesterday a grievance claiming the bonus. It is not specified in Referral scheme if the employee needs to be still employed. We should have been paid in November and he left in November. What would you advise?

He resigned before the candidate completed the three months agreed.

Hi Valentina,

I see three separate questions here.

1. Let's not forget that the complainant is now an ex-employee. Only employees are entitled to the grievance procedure. End of grievance.
2. Should you make a payment? Normally, rules of this type of scheme would be pretty black and white about who needs to still be employed after the initial period. If you have no clear written rules, you could IMHO legitimately argue that when the rules are unclear the plan's operation is at the discretion of the management, and the management has decided that no payment will be made since the person was no longer employed on the 4 month anniversary.
3. You decision on question 2 will probably be communicated by your ex-employee to ex-colleagues. Their reaction to this decision may (or may not) be a problem for the company, and you need to consider what reactions it will provoke.

Whatever you decide, try to tighten up the intention of how the plan is supposed to work, and draft some simple unambiguous wording for the future.

Hi Ray

Please see my response to your questions below:

1. His letter is dated 15th November and his last day was the 17th. Is it still not a grievance, right?

2. Finally the recruitment manager has handed me some guide lines that says: "If a referral candidate is successfully offered the role, the Referral Bounty is £3,000 (gross). Referral Bounties will be confirmed when a Referral candidate is offered the role and paid after 3 months after the Referral’s start date. Should a referral resign or leave the business prior to this point the Referral Bounty will not be paid". He resigned the 16th October, the candidate started the 24th July. He resigned then before the three months.

Hold on Valentina;

The referral candidate didn't resign did they - they are still working for you?

It is the employee who referred them who has resigned.

They gave notice on the 16th October, and their resignation became effective 17th November? Some of your dates contradict each other...

Yes he resigned the 16th and our guidelines say : If a referral candidate is successfully offered the role, the Referral Bounty is £3,000 (gross). Referral Bounties will be confirmed when a Referral candidate is offered the role and paid after 4 months after the Referral’s start date. Should a referral resign or leave the business prior to this point the Referral Bounty will not be paid.

The referral candidate has not left the business.

The referrer has left.

Therefore, the referrer is under the impression they are due the bounty (I don't blame them, that guideline is not worded well).

It is not explicitly specified that the referrer has to be in employment with the company to receive the bounty.

Working through a timeline:
- 24th July Referral candidate starts
- You are claiming the bounty would be due at 4 months, so (roughly) 24th November
- On the 16th October the Referrer handed in their notice.
- The referrer left the business with effect 17th November.

Because they are not in employment when the payment is due on the 24th November you are stating you will not pay.

Is this correct?

Now which is accurate - the 4 months or the 3 months because your guidelines replies say different?

It used to be four months, but we changed it in July to three. He resigned the 16th October though, before the three months (24th October) so we are fine about not paying, is that correct? Thanks is advance Laura!

There's no grievance to answer, Valentina, because your aggrieved is no longer an employee. It doesn't matter when he raised the grievance. Your company owes no obligation to him to resolve the grievance.

As a result, this boils down to just one thing: he says you owe him money and you have to decide whether or not you agree.

If you agree, send him the money.

If you disagree, send him nothing. He will have to take you to court to demonstrate a legal entitlement to that money (at his expense). You can then decide whether or not you want to fight it or settle. But odds are he won't, as the entitlement is highly debatable.

Thanks Robey, much appreciated.