Some companies deduct bonuses from Indemnity - For Contract Visa
We work for a private company on a contract under the Ministry of Defense, with over 100 employees. Our contract is finishing shortly, and we would like to know how to calculate our indemnity.
Our company says that the yearly completion bonuses they paid us in the past will be deducted from our terminal indemnity. Is this legal …?
Name withheld
Answer: You have not mentioned what your contract says on this issue, because bonuses and indemnity are two different issues and can’t be inter-linked.
If they paid you a bonus, it can’t be deducted but some firms pay a part of the indemnity on completion each year and this can be deducted from the terminal indemnity. So please check your contract.