Year-End Bonus Cancellation Letter to Employees

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

Bonus cancellation notice is formal and official kind of notice and is written by an employer to its employees. Employees are informed through this notice that their bonus would be canceled for certain time period. To break this kind of news is not an easy task as employees wait for the whole year to get a bonus at the end of the year. This situation arises in that case when business is running down and going through the tough times. In spite of 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, it is mandatory to inform the employees well before time so may they find some other solution according to the situation.

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

Bonus cancellation notice often sends to the employees due to the following reasons:

  • Either the business is running through the hard times.
  • On the basis of 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. As it is our company’s tradition to pay performance appraisals at the end of the year to all the employees of the company.

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

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

Thank you.


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