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Section A: Understanding Employee Bonuses
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Employers ought to communicate modifications clearly, seek the guidance of where applicable and provide cheap discover before withdrawing or altering a discretionary scheme. For discretionary bonuses, employers have extra flexibility to amend or withdraw the scheme, however discretion must still be exercised moderately. Importantly, withholding or reducing a contractual bonus with out consent might breach part 13 of the Employment Rights Act 1996, giving rise to an unlawful deduction of wages claim.
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