How to clarify when single payout is just that so employees don't expect it again
Question: We are a non-profit organization funded largely by the provincial government, which has provided us with some additional funding for salary increases but not enough to cover the increase in the cost of living. We would like to use other funding sources to provide our employees with a cost of living "bonus" this year, but we may not be able to do it again in the future. The bonus isn’t related to profits or performance and it will be across-the-board. We are looking for some wording other than "bonus" for this payment.
Answer: Employers often search for ways to describe payments made to employees in a manner that will not add to the employer’s ongoing wage costs, or otherwise expose the employer to liability in the future.
In such circumstances, it is important to make it clear the payment is being made on a one-time-only basis and it is not tied to wages, the cost of living, profits, or any other factor that may give rise to ongoing or future costs.
Calling a payment a one-time “bonus” may suffice in many situations. Other language that may be useful includes “gratuity,” “stipend,” or simply “payment.”
Colin G.M. Gibson is a partner with Harris & Company in Vancouver. He can be reached at [email protected] or (604) 891-2212.
Answer: Employers often search for ways to describe payments made to employees in a manner that will not add to the employer’s ongoing wage costs, or otherwise expose the employer to liability in the future.
In such circumstances, it is important to make it clear the payment is being made on a one-time-only basis and it is not tied to wages, the cost of living, profits, or any other factor that may give rise to ongoing or future costs.
Calling a payment a one-time “bonus” may suffice in many situations. Other language that may be useful includes “gratuity,” “stipend,” or simply “payment.”
Colin G.M. Gibson is a partner with Harris & Company in Vancouver. He can be reached at [email protected] or (604) 891-2212.
