The bonus was announced, but the payment conditions still mattered
An employee was told that she would receive a bonus, but her employment ended before the payment date. The written contract contained conditions that became decisive.
The contract made the bonus discretionary
The contract said that a bonus was discretionary and that there was no right to it if employment had ended, or notice had been given, by the date when it would otherwise be paid.
A conversation did not replace the written conditions
The employee was later told the amount of her bonus and the expected payment month. The tribunal found that the existing contractual conditions still applied. Because her employment ended before payment, the bonus claim was dismissed.
Questions to ask before relying on a bonus
A headline percentage or an announced amount is only part of the picture.
- Is the bonus contractual or discretionary?
- When is it earned, declared and paid?
- Must you still be employed and not under notice on the payment date?
- Can the employer change the scheme or its targets?
Treat the payment conditions as part of the value of a bonus. The amount alone does not tell you when, or whether, you become entitled to it.
Official source
Employment Tribunal, London Central · Decision date: 4 March 2021
Grassick v Grant Thornton UK LLP, Case 2207228/2020This story concerns United Kingdom law and is general information, not legal advice. The outcome depended on the specific contract and facts.