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Employers ought to manage disputes proactively by keeping accurate data of bonus calculations, communications and eligibility assessments. Where the bonus is contractual, a failure to pay might amount to an illegal deduction of wages under the Employment Rights Act 1996. Workers should verify discussions in writing to create a record of what was raised and when. For discretionary bonuses, employers have more flexibility to amend or withdraw the scheme, but discretion should still be exercised moderately.
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