21 August 2024
Bonus: a favor or a right?
In addition to the fixed salary, an employee can often earn an additional bonus. Conditions may be attached to the payment of the bonus. The employment contract or bonus scheme often states that the employer determines whether an employee is entitled to a bonus. This is called “discretionary authority.” How free is the employer to decide whether or not to pay a bonus? And can an employee acquire a right to the bonus?
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