Bonus payment letter

Added to the miscellaneous documents is a new template to use for any bonus payments you may wish to give to your staff.  It re-affirms that the bonus is discretionary and advises why the payment has been paid.

If you are paying a discretionary bonus you must ensure that you are applying that bonus fairly because you do not want to end up with any discrimination claims.  Applying the bonus can also relate to the bonus amount.  Ensure you have a scale that is clear, complies to your bonus scheme rules (if you have any) and is measurable so that you can explain your reasons if necessary.

If you do have a bonus scheme in place ensure it is robust and will stand up to any Employment Tribunal claims, for example if you regularly pay a bonus scheme it could be termed as custom and practice, unless your scheme specifically sets out that the Company is able to withhold all or part of the payment.