The claimant, a paralegal, worked part-time at the respondent solicitor’s firm and was initially employed by way of oral contract. There was no dispute between the parties that a meeting had been held in May 2015 regarding bonuses for paralegals and the claimant was eligible for an increased bonus. The respondent, however, argued that the contractual terms were such that the claimant would only receive the bonus if he was employed and not under notice by the end of June in any financial year. The claimant denied any such term ever existed. After handing in his notice in April 2016, the claimant enquired about his notice pay and was informed that he had not been employed at the right time of the financial year to be eligible. The tribunal accepted the claimant’s evidence and held that the company could not unilaterally alter what was agreed between the parties by issuing a draft contract with different terms. The claim was allowed and the firm was ordered to pay £13,830.50 to cover the unpaid bonus as well as the claimant’s lost wages.

Practical Lessons

The key legal point from this case unquestionably relates to the status of contractual terms. All contractual terms should ideally be agreed in writing before the commencement of employment and this is particularly true where bonus schemes are concerned. Whilst it is common practice for the precise details of bonuses to be ironed out after employment begins, this case demonstrates that having a ‘black and white’ agreement beforehand can potentially save such complications. It was a contractual variation that caused the problem here, yet having the agreement written and signed is equally important. Although there is Court of Appeal authority holding that terms can be modified orally, even if there is a contractual clause requiring them to be in writing, employers should not completely discount them. Such a clause would serve to heighten the burden of proving that a variation had occurred and would put the employer in a stronger position evidentially.
https://assets.publishing.service.gov.uk/media/59a6d062ed915d44ac71fdc1/Mr_C_Yucetas_v_Ersan_and_Co_Solicitors_Ltd_3323966.2016.pdf