In Hoyland v Asda Stores Ltd [2006] All ER (D) 133 CS, the Court of Session holds that despite being described as "discretionary" a bonus scheme was "regulated" by the employee's contract of employment and therefore fell outside the scope of the Sex Discrimination Act 1975.
In Farrell Matthews & Weir v Hansen, the EAT holds that a non-contractual bonus that had been declared constituted wages under s.27(3) of the Employment Rights Act 1996. The employer's failure to pay it therefore amounted to an unlawful deduction from wages.
In Coutts & Co plc v Cure; Royal Bank of Scotland v Fraser, the EAT holds that, in a case where an employer refused to pay a non-contractual bonus to all non-permanent employees, including some fixed-term workers, the tribunal did not err in law by holding that the reason for the less favourable treatment was on the ground of the employees' status as fixed-term workers.
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.
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.
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.