Employee incentives
In Peninsula Business Services Ltd v Sweeney the EAT holds that a sales executive's contract of employment incorporated the rules governing the employer's commission scheme, which specified that no payments of commission would be made if the employee was no longer in the employment at the date the commission would have been payable. Those rules were clearly set out in a written document that was specifically referred to as forming part of the contract, and which had been signed by the employee.
In Evans v Malley Organisation Ltd t/a First Business Support the Court of Appeal holds that an employee who was paid a basic salary, plus commission which depended on contracts he won for his employer, was entitled, on termination of his employment, to accrued statutory holiday pay calculated by reference to his basic pay alone, and not his average pay including commission.
In Chequepoint (UK) Ltd v Radwan, the Court of Appeal upholds an employment tribunal's award of damages to a dismissed employee in respect of unpaid bonuses.
A contractual discretion whether or not to award an equity trader any, and if so what, bonus, which was "dependent upon individual performance", was one that had to be exercised both by reference to an assessment of performance of the trader's contract and not irrationally or perversely, holds the High Court in Clark v Nomura International plc.
There was no transfer to which the Transfer of Undertakings Regulations applied when an industrial and provident society took over the management of local authority care homes by, in effect, acquiring the shares of the company that ran the homes and employed the staff who worked in them, holds the EAT in Brookes and others v Borough Care Services and CLS Care Services Ltd.
In Midland Bank plc v McCann (1998) IDS 623 EAT, the Employment Appeal Tribunal held that with regard to a discretionary bonus the employer had not exercised its discretion in such a way that it could be said to be in breach of the implied term of mutual trust and confidence.
In Robertson v Blackstone Franks Investment Management Ltd, the Court of Appeal holds that an investment consultant suffered unlawful deductions from his wages when commission earned in respect of work done before his contract was terminated, but payable after termination, was not paid.
An employer was contractually entitled to make changes to an incentive bonus scheme without the consent of employees individually or their trade union representatives, holds the EAT in Airlie and others v City of Edinburgh District Council.
Employment law cases: HR and legal information and guidance relating to employee incentives.