A money tree

Do employers really have discretion not to pay a bonus payment?

In this week’s episode of the Podcast I am talking about a subject that has come up from several enquiries we have received recently, and which is particularly important at this time of year when decisions are being made about end of year bonus payments.

So, when is an employer able to use discretion to decide not to pay an employee a bonus?

In this episode I will cover:

  • The difference between a contractual and discretionary bonus scheme.
  • The consequences of failing to pay a contractual bonus payment.
  • Why the Employment Tribunal is reluctant to allow employers to have complete discretion over payment of a bonus.
  • What you need to consider if you are an employer who includes a bonus scheme as part of your pay package for employees.

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As part of our HR Harbour annual subscription service for employers we provide guidance and training for employers, supervisors and managers. If you would like to know more about the HR Harbour Service and how you can get unlimited support from as little as £198 per month please contact me for a no obligation discussion – alison@realemploymentlawadvice.co.uk or you can find full details here: HR Harbour

Don’t forget you can contact us by telephone 01983 897003, 01722 653001 or 023 8098 2006

The information contained in this Podcast and post is provided for guidance and is a snapshot of the law at the time. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.

The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.