David Malamatenios is a partner, and Colin Makin, Krishna Santra, Sandra Martins and Melissa Powys-Rodrigues are solicitors at Colman Coyle Solicitors. They round up the latest rulings.
Practical guidance on implementing and managing a discretionary bonus scheme as part of the organisation's reward strategy, including setting key performance conditions.
A model bonuses policy, which deals with eligibility, payment of bonuses, nominations for a bonus, organisation-wide bonuses and production-based bonuses.
A model contract clause on the payment of bonuses.
A model contract clause on bonuses and expenses for managers.
In Small and others v Boots Co and another  All ER (D) 200 (Jan) EAT, the EAT held that the fact that the employer had stated that a bonus was discretionary did not necessarily mean that it had no contractual effect. The employer's discretion could relate to: whether or not to operate a bonus system at all; whether or not to award a bonus in a given year; or the amount of bonus to be awarded.
This week's case of the week, provided by Thomas Eggar, covers discretionary bonuses.
HR and legal information and guidance relating to employee bonuses.