Counting on a 13th cheque? Why it’s not always a sure thing

Heading into the final quarter of the year means many families are planning and budgeting for December.

While many rely on a 13th cheque for an extra boost, it is not standard practice for all companies.

It is solely up to the employer and the contractual or policy obligations, says ENS Employment executive Nils Braadvedt.

The policy can speak to an individual or company's performance, or other contributors, such as the share price.

“There is no set criterion for what triggers eligibility when a payment like this is made. It will generally be set out either in a contract or a policy.”

Braatvedt adds that while a reasonable expectation may have been created, a 13th cheque is still not guaranteed.

If companies won’t be issuing the bonus cheque, ample notice should be given.

If an employee can show that the notice period was too short or prejudicial as a result, there could be a case for unfairness.

“[Notice] needs to be [given] within a reasonable period; there is no set period, but it certainly wouldn’t be OK to do it at the eleventh hour,” he says.

To listen to Nils Braadvedt, executive at ENS Employment, in conversation with CapeTalk’s Lester Kiewit, use the audio player below: