Do employers really have discretion not to pay a bonus payment?

In this week’s episode of the Podcast I am talking about a subject that has come up in several enquiries we have received recently, and which is particularly important at this time of year when decisions are being made about end of year bonus payments.

So, when is an employer able to use discretion to decide not to pay an employee a bonus?

In this episode I will cover:

• The difference between a contractual and discretionary bonus scheme.
• The consequences of failing to pay a contractual bonus payment.
• Why the Employment Tribunal is reluctant to allow employers to have complete discretion over payment of a bonus.
• What you need to consider if you are an employer who includes a bonus scheme as part of your pay package for employees.

 

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The information contained in this Podcast and post is provided for guidance and is a snapshot of the law at the time. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.

The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.