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Bonuses also sit inside the broader reward framework of an organisation. They could also be linked to company-wide efficiency, individual efficiency or a defined occasion similar to project completion or year-end outcomes. Bonuses are payments made to employees in addition to their basic wages or wage. The article explains why the label “discretionary” on its own isn’t enough to guard the enterprise and why wording, behaviour and previous follow all matter when a tribunal or courtroom is deciding whether a bonus has become an implied contractual time period. We start by setting out what counts as a “bonus” in legal and HR phrases, and how bonuses sit alongside fundamental pay and different variable reward.
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