Year-End Bonus Cancellation Letter to Employees

Year-End Bonus Cancellation Letter to Employees

Letters Kate

A year-end bonus is a kind of reward usually given to employees at the end of the year. This is also called a Christmas Bonus or an Annual Bonus, in other words. These kinds of bonuses are usually given based on the performance of the employees. The bonus amount varies depending on whether certain mileposts are met or not. Year-end bonuses are offered to employees to reward them for their hard work and attachment to the work.

Bonus cancellation notice is a formal and official notice written by an employer to its employees. Employees are informed through this notice that their bonus will be canceled for a certain period.

Breaking this kind of news is not easy as employees wait for the whole year to get a bonus at the end of the year. This situation arises when a business is running down and going through tough times. Despite curtailing and making the employees jobless at that time, bonus cancellation becomes all-important.

Instead of sending these kinds of notices at the eleventh hour, informing the employees well before time is mandatory so they may find some other solution according to the situation.

Whatever the situation, it is heartbreaking and saddening for employees to receive the bonus cancellation notice. A company never wants to disappoint or deprive its employees of getting benefits. Still, seeing the situation sometimes becomes necessary because there is no other option left than to send this notice to employees.

Bonus cancellation notices are often sent to the employees for the following reasons:

  • Either the business is running through the hard times.
  • Based on the poor performance of the employees

Sample Letter

Smith Sherriff
Senior Finance and Audit Manager
SDF Electronics Manufactures
78132 SDF Heights, Shaman Road, Naples, Italy

20th April 20XX

All the Staff Members, Departments, and Sections
SDF Electronics Manufactures, Naples, Italy

Re. Notification Informing Year-End Bonus cancellation

Dear All,

It is informed with enough despondence that the company is compelled to cancel the year-end bonus grant in this session of 20XX. Our company’s tradition is to pay performance appraisals at the end of the year to all the company’s employees.

In session 20XX, certain changes were made by the Government of [X] in its tax impositions and implications for private companies. Due to those implications, the company has borne a bulky loss in its tax slot. Looking at the destabilization of the company’s finances, it has been decided by the Committee of Financial Affairs that year-end bonuses should be canceled as they will add to the company’s sabotage of financial loss and stability.

I am sure you can understand the problem well and will assure you of your cooperation.

Thank you.

Sincerely
(Signature)


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