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A discretionary bonus, generally described as a voluntary or non-contractual bonus, permits the employer flexibility over whether to award a fee and, if so, at what stage. Section A Summary Employee bonuses are further payments used to drive performance, reward contribution and attract expertise. Employers who invest time in designing the proper framework considerably reduce their publicity to claims and create a steady basis for performance-related reward. The operation of bonus schemes carries financial, legal and practical implications. HR groups need to understand the means to pro-rate bonuses appropriately and how to keep away from criteria or guidelines that put sure teams at an obstacle, for example employees on maternity go away 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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