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A discretionary bonus, generally described as a voluntary or non-contractual bonus, allows the employer flexibility over whether or not to award a payment and, in that case, at what degree. Section A Abstract Worker bonuses are extra funds used to drive performance, reward contribution and attract talent. Employers who invest time in designing the best framework significantly reduce their exposure to claims and create a steady foundation for performance-related reward. The operation of bonus schemes carries financial, legal and sensible implications. HR groups need to grasp how to pro-rate bonuses correctly and tips on how to keep away from criteria or rules that put certain groups at an obstacle, for example workers on maternity leave or different family go away. If a discretionary bonus scheme has unclear terms or wording, it might be interpreted as being contractual.
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