08th September 2010
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This month
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Legal updates
- Forcing retirement is discriminatory
- Tolerating sexual harassment does not imply acceptance
- Non-payment of discretionary bonus can give rise to claim
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Case archive
Enquiries
T: +44 (0) 1451 812 225
Non-payment of discretionary bonus can give rise to claim
Attrill v Dresdener Kleinwort and Commerzbank
2010 EWHC 1249 QB
Key facts
The applicants earned discretionary bonuses. Part way through the year, their employer created a bonus pool arrangement and said that bonuses would be ‘subject to review’. When bonus awards were reviewed and reduced by 90% the employees brought claims for breach of contract.
The ruling
This has not yet been subjected to a full trial but the claimants have defeated a motion that there was no realistic prospect of success, giving rise to the possibility of some interesting case law to come. In allowing the case to proceed, the court has ruled that the review by the employer was open to interpretation.
Our view
Hard on the heels of Rutherford v Seymour Pierce this case could lead to some review of employer’s discretionary bonus arrangements. They may not be a discretionary as you think!
