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.
In Enfield Technical Services Ltd v Payne; BF Components Ltd v Grace [2008] EWCA Civ 393, the Court of Appeal held that a genuine error in the categorisation of employment status will not be enough to establish illegality where there has been no express or implied misrepresentation of the facts of the working arrangements.
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