Bonuses
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.
The Employment Appeal Tribunal has held that, where an employer offers an incentive to employees to secure agreement to variation of their contracts, it is reasonable not to offer that benefit as part of an offer of re-engagement following dismissals for failure to agree.
Claire Benson is managing associate and Caroline Jacobs and Chris McAvoy are associates at Addleshaw Goddard LLP. They round up the latest rulings.
In Small and others v Boots Co and another [2009] 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.
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 DLA Piper, covers equal pay claims.
A review of a number of recent employment tribunal decisions suggests that some employers remain unaware of the implications of, or are struggling with, the Employment Equality (Age) Regulations 2006 (SI 2006/1031), which became law on 1 October 2006. The decisions also demonstrate the approach that the tribunals might take to the question of justification of discrimination and to the assessment of injury to feelings compensation.
This week's case of the week, provided by Addleshaw Goddard, covers discretionary bonuses.
In Commerzbank AG v Keen [2007] IRLR 132 CA the Court of Appeal held that an employer did not act in breach of the implied terms of a contract of employment in awarding to a highly paid employee lower bonuses than those recommended by his manager. Further, the terms of employment contracts are not covered by the provisions of the Unfair Contract Terms Act 1977.
This article looks at some of the significant judgments in the area of equal pay over the past year and their implications.
Employment law cases: HR and legal information and guidance relating to bonuses.