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Lastly, we cover altering or eradicating bonus schemes and the consequences of not paying a bonus. It explains the distinction between contractual and discretionary bonuses, how “custom and practice” can turn a voluntary bonus into a binding entitlement, and what you have to do to deal with part-time and fixed-term workers pretty. Used badly, it can create expectations the enterprise by no means meant to promise, lead to claims and damage trust between administration and employees. Used nicely, a bonus scheme can drive efficiency, assist retention and help position the organisation as a competitive employer in its market.

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