We profile the experience of manufacturer Fenner Dunlop in the design, implementation and subsequent evolution of its team bonus scheme, which has delivered significant productivity improvements while boosting teamworking practices.
The Court of Appeal has held that paying bonuses to employees who worked night shifts did not constitute sex discrimination.
This week's case of the week, provided by Addleshaw Goddard, covers discretionary bonuses.
In May Gurney Ltd v Adshead and others EAT/0150/06 the Employment Appeal Tribunal holds that the remuneration of employees entitled to a perfomance bonus "does vary with the amount of work done". Accordingly the amount of a week's pay for the purpose of calculating holiday pay will be determined by taking the employees' average pay over the 12 weeks preceding their holiday.
In Commerzbank AG v Keen  IRLR 132 CA, the Court of Appeal has held that, in order to show that an employer has breached a discretionary bonus term, the employee must demonstrate that the employer exercised its discretion irrationally or perversely.
A model contract clause on production-based bonus payments.
This week's case round-up from Eversheds, covering: transparency of incentive schemes; and time limits for making discrimination claims.
In Chequepoint (UK) Ltd v Radwan, the Court of Appeal upholds an employment tribunal's award of damages to a dismissed employee in respect of unpaid bonuses.
In Lewen v Denda, the European Court of Justice rules that, where a bonus that is paid voluntarily as an exceptional allowance at Christmas is awarded retroactively as pay for work done, an employer is precluded by Article 141 of the Treaty of Rome from excluding female workers on parental leave entirely from the benefit of the bonus, without taking account of the work done. But an employer may lawfully refuse to pay such a bonus to a woman on parental leave where that payment is subject only to her being in active employment.
HR and legal information and guidance relating to employee bonuses.