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Discretionary bonuses: Employer properly exercised discretion in making bonus payments

This report relates to 1 case(s)

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    Commerzbank AG v Keen [2007] IRLR 132 CA (1 other report)

    • Commerzbank AG v Keen

      22 November 2006

      In Commerzbank AG v Keen [2007] 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.

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.