Wager Mage
Wager Mage
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If an employer wishes to remove an existing scheme, they should proceed with caution. Employers can and do reserve the right to stop or remove a bonus scheme if they do not believe they can meet the cost, or feel that it is having a detrimental effect on the company.
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There are 52 cards in the pack, and the ranking of the individual cards, from high to low, is ace, king, queen, jack, 10, 9, 8, 7, 6, 5, 4, 3, 2.
Read More »If an employer wishes to remove an existing scheme, they should proceed with caution. Employers can and do reserve the right to stop or remove a bonus scheme if they do not believe they can meet the cost, or feel that it is having a detrimental effect on the company. For example, this extra incentive may be encouraging poor employee behaviour in order to meet the key targets required to be awarded the bonus. However, before a decision is made it should first be established if the bonus in question is contractual or discretionary.
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Read More »The problem between discretionary and contractual bonus schemes is that a scheme may be labelled discretionary but, because of the way it has been operated, is not. For example, a bonus may start off as discretionary but may become an implied term in a contract if an employee can demonstrate that payments have been made regularly over a number of years and have come to be expected. In these situations an employment tribunal will consider all relevant circumstances and may decide that the employer’s discretion to provide the bonus could be construed as having a contractual intent. When deciding whether a bonus is still discretionary, employers should first hold a review to see how regularly it has been awarded and if there have been any occasions where it has not. It should also be considered if they have the discretion as to whether to make the payment at all or if this discretion relates only to the performance threshold or percentage of salary that will be paid. Going forward they can also attempt to avoid this by clearly stating in the contract that the benefit forms part of a discretionary bonus scheme; outlining that the employer reserves the right not to award it and that it can be withdrawn at any time.
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