By Claire Birkinshaw
Discretionary bonuses are a useful reward system as they can help to motivate and maintain staff. Indeed, in the financial sector, they are often much more important than basic salary. In other sectors of industry they can represent a significant enhancement to the basic package. However, as court decisions over the last few years have spelled out only too clearly, the use of the word “discretionary” is misleading.
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About the author
Claire Birkinshaw
Claire Birkinshaw has worked at two of the top 10 London law firms, as a legal adviser to the Ministry of Defence, and as a legal information manager with Abbey Legal Protection.