Rationale for Award: Provide a brief explanation of why the bonus is being awarded. Merit pay systems are delivered in the form of annual raises to employees.They are usually defined to have four basic features listed below. Bonuses are considered paid when received so it must be included in the employee's income. In this article, we will share a bonus cancellation letter example and review what your own letter template should include. In short, yes, an employer can withhold a bonus from an employee who is ineligible for the bonus due to FMLArelated absences. This bonus announcement sample letter may be used as a memo to all workers or to an individual employee. Companies use policy update letters to notify employees about new changes in the organization. Ability to reason soundly and to think out practical solutions to problems. Joan Chandos Baez is an American singer, songwriter, musician, and activist.