What is the entitlement?

Whether an individual is entitled to a bonus and the level of that potential bonus may be set out in a contract, bonus scheme, side agreement and/or offer letter. Alternatively, it may not be set out in writing but could be based on an oral promise or ‘custom and practice’; both of which are possible to establish albeit more difficult to evidence.

The amount that an individual may be entitled to will depend on the character of the bonus e.g. discretionary, fixed, partially discretionary, formula-based, within set parameters; see below for more details.