BOV has reversed its controversial decision to halt payments of its employees’ performance bonus for last year and has instructed its managers to make a correction, the Times of Malta is informed.

In an internal letter to employees, outgoing CEO Charles Borg said that following a review of the situation, “the bank has directed management to rectify any anomalies that may have been created”.

The bank has told employees it will give them a further extension, the third, until the middle of this month, so that all work related to the performance appraisals for last year can be concluded. “Following the closure of the exercise, the bank would be in a position to pay out any differences to employees whose actual 2014 performance exceeds their preceding three-year average,” Mr Borg wrote.

“I also confirm that where it results that an employee would have scored lower than the average score used for the calculation basis, no deductions will be made.”

The bank’s reversal of its unpopular stance follows reports by this newspaper of an upheaval among BOV employees over the unprecedented move.

The bank will be in a position to pay out any differences to employees whose 2014 performance exceeds their preceding three-year average

The issue goes back to last December, when the usual yearly appraisals for each employee’s performance targets should have been ready but were not.

In the absence of a collective agreement, the bank issued a unilateral decision to grant a one-time ex gratia bonus to all employees in recognition of their efforts throughout the year.

The bonus was calculated on the average of the previous three-year performance appraisals and came with the proviso that adjustments would be made for those employees who achieved a better actual score in 2014 than the average score used to calculate the bonus paid out in December.

However, to the surprise of employees, many of whom were expecting a top-up, the bank last month failed to honour its promise and decided that no additional bonuses would be paid irrespective of the scores in the individual appraisals.

A flood of complaints followed, with the unions insisting that the bank must correct this anomaly. Following further discussions, the BOV management has now conceded that it made a mistake.

According to Mr Borg, there are still 79 appraisals to be concluded and he urged all those involved not to surpass the September 15 deadline.