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Q: What Restrictions Will I’ve To Face?

Finally, we cover altering or removing bonus schemes and the consequences of not paying a bonus. It explains the difference between contractual and discretionary bonuses, how “custom and practice” can turn a voluntary bonus right into a binding entitlement, and what you want to do to deal with part-time and fixed-term workers pretty. Used badly, it can create expectations the enterprise by no means meant to vow, result in claims and injury belief between management and employees. Used properly, a bonus scheme can drive efficiency, help retention and assist position the organisation as a competitive employer in its market.

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Any bonus system must comply with the Equality Act 2010, together with indirect discrimination risks. A failure to use objective standards, or to maintain data that show why decisions have been made, can make the enterprise vulnerable to problem. For example, unclear wording may enable a discretionary scheme to be interpreted as contractual, or inconsistent awarding of bonuses may give rise to claims of unfairness or discrimination.

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