Bonus clauses - Preview
These standard clauses provide alternative options for drafting bonus provisions for employment contracts, tailored to the level of discretion an employer wishes to retain. The clauses address various scenarios, ranging from purely discretionary, non-contractual bonus schemes to formal, contractual bonus schemes with fixed terms. They explore the critical distinction between contractual and non-contractual arrangements and the legal limits on an employer's discretion, even when a bonus is described as "absolute". These standard clauses also consider key practical issues such as the pensionability of bonus payments, conditions for payment, and the inclusion of optional clawback provisions to allow for recovery of bonus payments in certain circumstances. The drafting addresses an employer's obligations to provide information about remuneration under the Employment Rights Act 1996 (ERA 1996).
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