i need advise with my employment contract?

Question

I work in construction and had signed a contract 18 months ago which included a substantial bonus on completion of the contract.I had fulfilled all the requirements under the terms of the contract approx 2 months ago and have waited patiently for news of my bonus to be payed out before Christmas which is traditional in Construction.I am shocked to have been informed by the director that 'as things are a bit tight, I can't pay you any thing'. I am seriously angry that having fullfilled my obligations, I will not be receiving any bonus until the last 2 properties are sold. My terms do not relate to the properties being sold or not, only their satisfactory completion.This is a very small developer, but where do i stand regarding this situation.?This contract relates to my previous position within the company which was superceded by a new contract of employment due to promotion in October.How long do my old contract terms remain enforceable?

Answer 1

Request that the bonus be paid as stipulated on the contract. If no payment is made, file a collection case in court if you really wanted that the agreement be enforced.

Answer 2

Small developers in both residential homes as well as commercial development are having a very "tough" time with "cash flow". 18 months ago current market trends were questionable but homes were still selling. Developers of all sizes have made "good" money since the housing "booms" began in 1950's and are not familiar with not making money.

Working for the developer you already have an idea how funds are spent. As money comes in from one developed area most of the profits go to begin the next. A true indicater of a "struggling" developer is "missing" payroll. If you are happy with this company, continuing to receive payroll check on time, and the promotion including a raise in income was awarded, the developer, in time, will get your bonus to you as the market improves. I am certain, if you ask or have already, the developer will or has told you he needs to get paid first. Since you are an employee work hard not to put the developer in a position of not paying sub-contractors or suppliers resulting in liens. Liens against developers will prevent acquisitions of permits, suppliers will not sell materials on credit, sub-contractors will not work on the jobs, etc., etc. creating no income due to no buildings/houses.

Another approach is to request a partial amount in cash on the bonus. Cash eliminates the taxes reported. Your willingness to approach in this manner will show your dedication and respect to the company.

October 31, 2007, the housing market hit its lowest point. Since, we have seen a slow push upward. Why? There are a couple of reasons: #1. Buyers are finding very low prices, both new and resale, with lots of upgrades. In the North Atlanta area some builders have discounted from $50,000 (+/-) to $200,000 (+/-) depending on a homes price point just since last 30 days. Buyers are paying attention and beginning to buy. Buyers are also being assisted by our Federal Reserve system with recent lowering of interest rates. #2. Current home owners with those ARM product mortgages adjustable in 3/5/7 years, especially Interest Only with rates as low as 3.00% (+/-), can no longer afford to live where they are now due to adjustments. We are seeing a tremendous amount purchasing to "down size". These are people going from a typical $500,000 to $1M home down to a home in the 3's.

If you are happy, "hang in there" and support your company. I do not believe going to small claims court or filing a complaint with your state's Department of Human Resources will resolve anything and I can assure you the developer will not continue your employment.