What if someone is working out their notice period?
The terms governing the bonus arrangement typically state whether the individual will be paid their bonus if they are employed but working out their notice period. There may be a distinction between those whose employment is terminating for certain reasons compared with others. (This distinction may be labelled “good leaver” and “bad leaver” see below.) For example, if an individual’s role is made redundant or they are departing as a result of ill-health, the terms may provide that they still receive some or all of their bonus. Ordinarily employers will not want to pay out a bonus if an employee is leaving because of conduct issues or if they are joining a competitor.