A Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment Honda has overpaid bonuses to the employees.
During COVID -19 there had been increased inflation. On the other hand, many companies have laid off their employees and have also frozen their hiring. However, now Honda on the other end has paid excess bonuses to its employees.
The company has asked its employees to pay back a portion of the bonus that they have received in excess.
The company said in a statement, “Earlier this month Honda provided bonus payments to its associates, some of whom received overpayments.”
“Issues related to compensation are a sensitive matter and we are working quickly on this item to minimize any potential impact to our associates”, the statement added.
“Since this is a personnel issue, we have no further information to provide related to this matter,” the statement further added.
According to a report in NBC4, The company has also sent a memo to employees at its Marysville, Ohio, factory. The memo added that the company had overpaid the bonus amount and asked its employee to pay it back.
The memo further said that if employees do not respond, the money will be deducted from their pay automatically. The company confirmed that it asked employees to repay some of their bonuses and claimed that it was legally justified.
However, the company has refused to disclose the exact amount of excess bonuses paid to the employees and how much the employees are asked to repay back to the company.
NBC4 has also quoted that the wife of employees who said the amount to be returned is equal to a car payment.
“That’s, you know, a car payment. That’s half of our mortgage…That’s two, or three weeks’ worth of groceries”, she said.
“That’s a lot of money for us.” she further said to NBC4.
She further stated that Honda had asked to pay back almost 10% of the bonus that was given to these employees.