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Bonus Dispute

Home » Employment Law » Bonus Dispute

Employee Working

Bonus Disputes

Expert Legal Support for Workplace Compensation Claims

If your employer has unfairly withheld, reduced, or refused to pay your bonus, our specialist employment solicitors can help you recover what you’re owed. We handle complex bonus disputes with expertise in negotiation and litigation. Contact us today: 0203 909 8399 | Book a Consultation

What Is a Bonus Dispute?

A bonus dispute arises when an employer fails to pay an expected bonus, reduces it unfairly, or exercises discretion in bad faith. These disputes are particularly common in sectors where bonuses form a significant part of compensation packages, such as banking, sales, and executive positions.

Do You Have a Valid Bonus Claim?

You may have a claim if:

  • Your bonus was contractually guaranteed
  • Discretion was exercised unfairly or in bad faith
  • Similar employees received bonuses but you didn’t
  • Bonus reduction was discriminatory
  • Performance targets were met but bonus withheld

Types of Bonus Disputes

Contractual Bonuses

  • Guaranteed bonus payments
  • Performance-linked bonuses
  • Annual or quarterly bonuses
  • Commission structures
  • Profit-sharing arrangements

Discretionary Bonuses

  • Management discretion disputes
  • Unfair exercise of discretion
  • Bad faith decisions
  • Inconsistent application
  • Arbitrary reductions

Discriminatory Practices

  • Gender-based pay disparities
  • Age discrimination in bonus allocation
  • Race or ethnicity-based differences
  • Disability-related reductions
  • Part-time worker discrimination

Common Bonus Dispute Issues

Calculation Disputes

  • Incorrect performance metrics
  • Changed calculation methods
  • Disputed target achievement
  • Pro-rating disagreements
  • Currency conversion issues

Timing Issues

  • Delayed bonus payments
  • Resignation before payment date
  • Dismissal impact on bonuses
  • Year-end timing disputes
  • Notice period considerations

Eligibility Disputes

  • Employment status questions
  • Qualifying period requirements
  • Department or team eligibility
  • Maternity/paternity leave impact
  • Sickness absence effects

Building Your Bonus Claim

Essential Documentation

  • Employment contract terms
  • Bonus scheme documentation
  • Performance reviews and targets
  • Email correspondence about bonuses
  • Historical bonus payments
  • Comparator employee information

Evidence of Bad Faith

  • Inconsistent treatment
  • Discriminatory patterns
  • Arbitrary decision-making
  • Lack of proper explanation
  • Retaliation for complaints

Legal Routes for Recovery

Internal Resolution

  • Formal grievance procedures
  • Appeals to senior management
  • HR intervention
  • Mediation attempts
  • Direct negotiation

External Claims

  • Employment Tribunal claims
  • High Court proceedings
  • ACAS early conciliation
  • Breach of contract actions
  • Discrimination claims

High-Value Bonus Claims

  • Banking Sector – Investment banking bonuses and carried interest
  • Sales Roles – Commission structures and incentive schemes
  • Executive Level – Performance-related pay and share options
  • Professional Services – Partnership distributions and profit shares
  • Tech Industry – Stock options and retention bonuses

Negotiation Strategies

Pre-Litigation

  • Calculate full entitlement
  • Identify leverage points
  • Propose settlement terms
  • Consider tax implications
  • Negotiate payment structure

During Proceedings

  • Maintain settlement dialogue
  • Use mediation opportunities
  • Consider partial settlements
  • Balance risk and reward
  • Factor in legal costs

Why Choose Connaught Law

  • Specialist bonus dispute expertise
  • Strong financial sector experience
  • Successful negotiation track record
  • High Court litigation capability
  • Understanding of complex schemes

Our Approach

  • Detailed scheme analysis
  • Precise calculation of entitlements
  • Strategic claim development
  • Robust negotiation tactics
  • Cost-effective resolution focus

Time Limits

  • Contract claims – 6 years from breach
  • Tribunal claims – 3 months less one day
  • Discrimination aspects – 3 months
  • Importance of acting quickly

Next Steps

Don’t let your employer unfairly withhold your bonus. Our employment law specialists have extensive experience recovering bonuses through negotiation and litigation. We understand complex compensation structures and will fight for your entitlement. Call 0203 909 8399 or Book Online for immediate expert advice.

We’re here to help.
Book your consultation with Connaught Law today.
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Connaughts is the trading name of Connaught Law Limited, a company registered in England and Wales (Company No. 10595036). This firm is regulated by the Solicitors Regulation Authority.