Can a breach of contract claim be made against a bonus?

A failure to adhere to the contractual arrangements could give rise to a breach of contract claim and/or constructive dismissal. The bonus scheme may be a mix of the above two, with a discretionary element as to the amount of the bonus working alongside a contractual right to participate in a bonus scheme.

How is a bonus treated under the Employment Rights Act?

Where a non-contractual bonus has already been paid to you, it is treated as “wages” under the Employment Rights Act, and due and payable on the date payment is made. In fact, this definition of wages also applies where your employer has exercised its discretion and awarded/declared a bonus (even if it has not yet been paid).

What was the outcome of the Commerzbank bonus case?

In the end, only a tenth of that bonus was paid. Although the case turned on the particular contractual obligations of Commerzbank to their staff, the court ruling could mean that more bankers will have the right to sue for similar promised bonuses- whether informally made or otherwise.

When is an employer liable for a discretionary bonus?

Without such wording, employers could become liable for significant sums at times when their balance sheets can least afford it, as they will have an obligation to pay regardless of circumstances.

What to consider when drafting contractual bonus clauses?

Any employee should carefully consider the fine detail of such clauses and ensure they meet any conditions for non-repayment, if they wish to avoid that. Use clear and concise language, as for any employment contract generally. Avoid convoluted sentences which may be ambiguous.

What happens if an employer breaches a settlement agreement?

If negotiations are not successful following a breach by the employer, then the employee will have to bring a breach of contract claim against the employer. Or (if the time limits allow) they could seek to file a claim against the employer at the Employment Tribunal and/or reinstate a claim settled under the (breached) settlement agreement.

What is the repayment clause in Craven’s contract?

The agreement stated that he would receive a bonus advance of £500,000, but this was backed by a repayment clause which expressly stated that if Craven resigned on or before 31 December 2016 the advance would be repayable in full. On 23 September 2015, Craven submitted his notice of resignation with effect ‘from today’s date’.

When is a breach of confidentiality in the public interest justified?

Article 10 of the European Convention on Human Rights may justify breach of confidence where disclosure is in the public interest. Whether it is justified is highly fact sensitive – it depends on precisely what happened. Article 10 requires balancing the claimant’s right to confidentiality with the defendant’s right of freedom of expression.

What happens if you take legal advice on incorrect billing?

Point this out to them and do not be threatened. If they take legal advice, their solicitor will tell them that they have no chance in recovering more money from you, after all you can argue that you would not have accepted their offer at the price that they are now trying to charge.

What can cause a solicitor to make a mistake?

A failure by a solicitor to comply with a court order, resulting in a claim being struck out; Bad drafting of an option agreement on a purchase of development land. For a mistake by a solicitor to amount to a claim for negligence, it must have caused you loss.

What happens if a solicitor fails to take instructions from joint owners?

A failure by a solicitor to take instructions from joint owners of a property, allowing one joint owner to mortgage the property and benefit to the detriment of the other;

When to take legal advice about Christmas bonuses?

Advice should always be taken in this situation because, as you will no doubt be aware, there are special protections afforded to women who are pregnant or who are on maternity leave and an employer could be at risk of a claim of detrimental treatment and/or discrimination if they do not get it right.

Can a lawyer give a paralegal a bonus?

If a lawyer wants to give a paralegal a bonus at the end of the year, a compensation plan that includes bonuses can be implemented, as long as the amounts are based upon the individual’s productivity or the firm’s profitability. A paralegal is a critical member of the legal team and can greatly enhance a firm’s efficiency and productivity.