Drafting a bonus scheme checklist

Filed Under: Recruitment & Contracts - Checklists | Published on: Tuesday, 07 February 2012 10:07 AM
A carefully drafted contractual bonus scheme will usually contain:
  1. 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. 
  2. 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. 
  3. 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. 
  4. A provision describing whether a bonus will form part of any agreed liquidated damages payment. 
SEARCH TERMS: HR, HR RESOURCES, PAY, EMPLOYMENT, EMPLOYER, EMPLOYEE, CONTRACTS, BONUS, BENEFITS
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