‘Bonus pay’ means money paid to employees which is over and above their wages and overtime money. The law does not say that an employer must pay a bonus to employees although some Bargaining Council Agreements do. This is ‘extra’ money. It is usually paid out at the end of the year, for example, for good performance during the year, or for targets reached in production of goods. Bonuses should always be paid equally and fairly to employees with similar productivity – with no preference being given to certain employees. Bonus pay must be paid if:

• An employer gave a bonus to the employees at the end of every year in the past, the employer created an ‘expectation’ in the employees that they will get a bonus every year. And it has become the custom to get the bonus. The employees then have a right to demand the same bonus every year. If the employer suddenly decides not to give a bonus, the employees can claim the bonus as a custom and practice.

• It says in a contract of employment or a collective agreement that the employee will get a bonus. The employer must pay the bonus as agreed (unless it depends on the employee doing something which the employee did not do).