Employment matters: Are discretionary bonuses really discretionary?

Employers looking at discontinuing a discretionary bonus scheme should first seek legal advice

19th June, 2016

The issue of discretionary bonuses and allowances was recently considered in the context of the Payment of Wages act 1991 in the case of Cleary & Others v B&Q Ireland Limited (High Court, January 8th 2016).

Ten employees of B&Q Ireland claimed that their employer’s decision to withdraw a winter/summer bonus, as well as a zone allowance paid to employees working in Dublin stores, was in breach of the 1991 act.

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