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Casual assurances can create expectations and should contribute to an argument that a bonus was contractually owed, relying on the wording used, the context and the employer’s general conduct. They are included in the employee’s gross taxable pay for the period in which they are paid, not the period to which they may relate. The Place a bonus scheme has been operated informally or inconsistently, employers should take advice earlier than making adjustments or withholding funds, as the risk of inadvertently breaching implied phrases or triggering claims is higher. For discretionary bonuses, employers have extra flexibility to amend or withdraw the scheme, but discretion must still be exercised reasonably.
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