Payment of performance based bonuses - How do we stand for those employees off on maternity leave during the year ? Also can we pro-rata an employee off on sick leave?Posted in : First Tuesday Q&A NI on 5 February 2013
A performance related bonus can measure “performance” in many different ways, for example, on the employer’s performance as a whole, the individual’s/team’s performance against certain criteria or on the employee’s attendance record.
Where a contractual bonus is paid in recognition of the performance of the business as a whole, and on an individual’s attendance record, the GB Employment Appeal Tribunal (EAT) decision in Hoyland v Asda Stores Ltd (2005) states that such bonuses can be pro-rated to reflect the time actually worked by an employee off on maternity leave. In the Hoyland v Asda case, the EAT confirmed that where a contractual bonus was paid to reward employees for
Already a subscriber?
Click here to login and access the full article.Log in now to read the full article
Don't miss out, start your free trial today!
Are you fully aware of the benefits of Legal-Island's Employment Law Update Service? We help hundreds of people like you understand how the latest changes in employment law impact on your business.
Help understand the ramifications of each important case from NI, GB and Europe
24/7 access to all the content in the Legal Island Vault for research case law and HR issues
Ensure your organisation’s policies and procedures are fully compliant with NI law
Receive free preliminary advice on workplace issues from the employment team at Worthingtons Solicitors
Back to Q&A's This article is correct at 02/09/2015
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.