Failure to Pay Bonuses
Performance-related pay schemes can be complicated and, in some cases, an employer may make a mistake or fail to pay an employee their due bonuses or commission. In these situations, it is vital everybody involved keeps copies of all correspondence, work done and the agreements under contract.
The first course of action any employee should take is to approach their employer and ask whether a mistake has been made. Mistakes are common with performance-related scheme and can often be resolved quickly and without the need for employment solicitors or Tribunals. However, should an employer refuse to pay an employee the bonuses they are due, the law is there to protect the employee.
Because all rights to bonuses and commission should be outlined in employment contracts, many cases of in which employers fail to pay due bonuses are considered breaches of contract. However, contracts are often written in such a way that one part can overrule another, making breaches of contract tough cases. To this extent, it is also common for employees to claim their employer has unlawfully deducted their wages by not paying their due bonus.
