Bonus Cancellation Order Letter

Bonus Cancellation Order Letter

[Cancellation of bonus letter is written by an employer to the employee or employees stating that their bonus for the specified period is canceled for so and so reason. However, the purpose of the cancellation letter is the same that is canceling the order or approval given before. Below briefly focus on sample Bonus Cancellation Order Letter. In this letter, the subject is written in a polite tone, and at the same time, it remains firm with the objective. This is a formal letter and thus should follow the basic formal format. You need to modify this sample according to your needs.]


Sender/your name…

Job designation and Department Name…

Date: DD/MM/YY (Date on Which Letter is Written)


Receiver//Employee name…

Job designation and Department Name…

Subject: Regarding the cancellation of the bonus

Respected (Employee name),

As you all know the company is facing hurdles and is not in good shape at present. (Mention all the instances you wish to state the tough times of the company.) (Describe in your words).

We are extremely sorry to declare the news to you all, but this year we are forced and would not be able to give a bonus to any of the employees. (Describe actual cause and situation). (Mention regrets about this decision and also mention that the company is aware of the hard work put in by the staff for completing the work.

(Also, state that you will be compensating for this in some way or the other as soon the company transforms into good shape). (Cordially describe you greetings and expectation).

Thanking you,

Yours Sincerely,

(Your name)

Job designation and Department Name…

Contact info. and Signature…


Another format, [Email Format]

To: receiver mail address,

From: Sender mail address,

Subject: Regarding the cancellation of the bonus.

Respected (name),

This has been a difficult year for the (company name). I am sure that you all know that the loss of our contracts with the (Another company/project name), due to the loss in data appropriations. This has affected the company to a great extent, and we are still recuperating. (Describe actual cause and situation).

In (Date/meeting), we had a major decision to make. (Describe official decision). We were forced to eliminate one of our policies this year, which was our annual All-Employee bonus to each of our employees.

This will be the first year since YYYY that we will be unable to thank you for all your hard work and loyalty. (Explain your recommendation). We are all hoping that YYYY will be a prosperous year and that we will be able to reinstate our traditional All-Employee bonus policy.

We know that everyone has worked very hard this year and deserved a bonus, but the state of the company is not such that it affords a bonus. (Cordially describe you greetings and expectation).  We would certainly compensate for this. Hope you all understand the situation and still show the same faith in the company.

Thanking you,

Yours Sincerely,


Job designation and Department Name…

Contact info…