Incentive-based remuneration attracts and retains talented workers, creating a sense of loyalty, rewarding good performance and increasing motivation.
A bonus is, traditionally, a sum of money added to a person’s wages or salary as recognition for strong performance. It is distinct from a commission, which is usually a fixed sum or percentage linked to the achievement of specific targets, such as sales targets.
Bonus disputes commonly arise when an employee receives a bonus which is less than they expected, or when they don’t receive a bonus at all.
What does a bonus dispute solicitor do?
Navigating bonus disputes can be complex, but our experienced bonus dispute solicitors at B P Collins are here to help. The team can advise you on new terms and conditions related to bonuses in your employment contract or whether you are seeking clarification on your bonus entitlement at the end of a financial year or upon the termination of your employment.
Contractual vs discretionary bonuses
A bonus may be expressly provided for in a contract and calculated according to a stated formula, or, at the other extreme, it may be wholly outside the express terms of the contract, and paid as and when the employer feels it is merited.
In practice, the distinction between a contractual and non-contractual bonus may not be so clear-cut. It has become more common for employers to give employees a contractual right to participate in a discretionary scheme, with maximum discretion being reserved to the employer over whether a payment is made at all, the amount paid, or the timing and conditions of the payment.
The courts and tribunals have been willing to place certain limits on the exercise of discretion by employers in bonus schemes, making use of implied terms (particularly the duty of mutual trust and confidence) and considering concepts of reasonableness.
In this way, bonus schemes expressed to be non-contractual or discretionary can give rise to contractual rights. In addition, cases on the exercise of discretion in other contexts (for example, in relation to the operation of share option schemes or pay rises) may also be relevant when considering issues relating to bonuses. This means that sometimes employers may not have as much discretion as they think.
Why choose B P Collins as your bonus dispute solicitors?
With over 50 years of experience in employment law, we’re consistently ranked by Chambers UK and The Legal 500 for the strength of our employment practice. Our solicitors have helped employees – from junior staff to senior executives – navigate bonus schemes and bonus disputes with confidence and clarity.
The employment solicitors at B P Collins are also members of the Employment Lawyers Association.
Price and service transparency
In most cases, your employer will contribute to your legal costs. We offer fixed fees for reviewing and advising on settlement agreements. Where further negotiation is required, we’ll agree on transparent fees in advance and keep you updated every step of the way.
View our price and service transparency here.
Contact our bonus dispute solicitors today
For immediate advice, contact our bonus scheme and bonus dispute lawyers on 01753 889995 or email enquiries@bpcollins.co.uk. We can offer same-day appointments by phone, video call or in-person, from our offices in London, Ickenham, Thame and Gerrards Cross.
