Bonuses are a common point of dispute between employers and employees. The dispute can arise over the amount received as a bonus or even whether the employee should be receiving a bonus at all.
Such disputes usually centre on the contractual element of bonuses and whether discretion has been used perversely, or can arise as a result of a contract renegotiation. It is therefore important for organisations to get their employment contracts right.
If employees have a contractual bonus entitlement, they should receive a bonus each year. The contract may also stipulate the amount they will receive. An employee with this type of bonus arrangement will be in a strong position to enforce payment of that bonus and to prevent the employer from attaching additional conditions such as deferral.
Alternatively, this bonus may be discretionary which means employees have a contractual right to be considered for a bonus but the amount of the bonus is discretionary or they may only be considered for a bonus at their employer's discretion.
It is important to remember that employers who retain discretion with regards to bonus payments cannot act entirely as they wish. Employers must not exercise their discretion in an irrational or perverse way.
The first step in any bonus claim is careful review of the documentation and frank discussion about your options and best course of action.
We have a long and consistent track record of acting for city based professionals in contractual disputes concerning bonuses and discrimination or whistle blowing situations.
Our team of specialist employment law solicitors understand the unique environment and pressures of city professionals which means that we can provide clear, commercial advice.
For more information or to speak to our employment lawyers, please contact Richard Fox at rfox@kingsleynapley.co.uk or Adrian Crawford at acrawford@kingsleynapley.co.uk.
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