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Drafting a bonus scheme checklist
A carefully drafted contractual bonus scheme will usually contain:
A condition that the employee remain in employment, not under notice of termination (given or received) on a stipulated qualification or payment date in order to receive the bonus.
A mechanism for pro-rata payment in the years of joining and departure, or a proviso that no payments will be made in respect of either or both of those years.
A proviso that no payments will be payable during any period of notice, garden leave or suspension or whilst the employee is subject to the company`s formal disciplinary procedure.
A provision describing whether a bonus will form part of any agreed liquidated damages payment.
Last updated on 06/01/2017 11:16:56 |