This note looks at the various types of bonus scheme and considers the limits on an employer's discretion in relation to bonuses, the impact of implied terms on the payment of bonuses and what happens to bonuses on termination of employment. It considers discrimination issues, including the effect of maternity leave on bonus entitlement. It also examines the regulation of bonuses both for directors and those in the financial services sector, where remuneration is increasingly subject to statutory control.
An overview of the way in which payments made to employees on termination of their employment are taxed. NOTE: This resource is being reviewed in light of the 2013 Autumn Statement. For more information, see Legal update, 2013 Autumn Statement: business tax implications.