Letter to Employee Informing him about No Performance Bonus

Notice to Employees of Bonus Cancellation

Letters Kate

It is a formal official notice written by an employer to his employees. This notice informs employees that their bonus for a specified period will be cancelled. It’s never easy to break this news to employees, but it has to be done when a business faces a hard time.

At that time, bonus cancellation becomes indispensable instead of downsizing and rendering the employees jobless. However, before sending this kind of notice, employees must be confident enough to make early arrangements based on the situation.

Whatever the case, it is always disheartening for an employer to send a bonus cancellation notice to his employees. Every company values its employees and never wants to deprive them of financial benefits. But sometimes, the employer has no choice but to send notices like this.

Reasons behind bonus cancellation notice

  • If the business is facing hard times.
  • This notice can also be given to an employee who shows poor performance.

Sample Letter

Dear Employees,

As you know, our tradition is to award our employees with annual bonuses for their wonderful services. I regret to announce that your bonuses have been cancelled this year. We had to take this hard step because the coronavirus outbreak badly affected our exports to China, Canada, and Russia, and the company suffered great losses. The situation led to a huge financial crisis. We had no choice but to cancel each employee’s bonus.

Last month, we made a decision when our HR recommended eliminating many employees. The second option was cost reduction while keeping everybody secure. We have a second option, keeping in view the prevailing job crisis. Unfortunately, we had to eliminate your annual bonus this year.

It has been the first time since 1990 that we have not paid bonuses to our employees. I hope the situation improves next year, and then we will reinstate our bonus policy.

Regards,

Anderson,
CEO Stars Chemicals Pvt. Ltd.


File: Word (.docx) 2007+ and iPad Size 18 Kb | Download

Sample Letter -2

Letter to an Employee Informing him about No Performance Bonus

20th April 20XX

Lucas Romer

The Manager,
Estacio Group of Companies
Box no. 50897, Dubai, Emirates

Dear George,

This writing aims to respond to your request for a five per cent increase in your salary next month as a bonus. I went through your email watchfully and read all of your contents and reasons for rationalizing a salary bonus for you. I also revisited your profile, considering all of the projects you have worked on.

Here, I want to provide some details regarding your working efficiency and overall performance. Dear George, You joined the company one year ago. From your first day to the present day, your work has been scrutinized.

  1. You have been non-serious about the punctuality needed at work and the rules and regulations. You were given a detailed warning letter asking you to be punctual and get serious about the work.
  2. The last two months were crucial days for the company, and you remained absent many times without informing the admin.
  3. You were given three major projects to work on for which you were reported as highly unprofessional and non-serious.

George, everyone on this planet is going through some troubles and hard times, but you are challenged to keep pace and balance and never mix your professional and personal life, which affects your working capabilities and efficiency. At the time of the interview, you were informed about your lack of experience and the level of productivity and proactivity the company demands. Still, you promised to keep the company within your capabilities.

You have performed well, but your performance is much lower than the company’s expectations. The company’s CEO discussed your case, but he believes that you need to work harder and faster and show ability to demand a salary bonus. Unfortunately, your performance has been unsatisfactory in terms of discipline and efficiency.

The company rewards employees who have met expectations and can become the company’s lead workers after winning at least five consecutive projects.

To win a title, likewise, I suggest you wait for three months and improve your work proactivity. You are welcome to negotiate.

Thanks.

Sincerely

(Signature)


File: Word (.docx) 2007+ and iPad Size 22 Kb | Download