The claimant worked in the Quality Control Department of the respondent’s factory, which manufactured doors of different types. He was on a temporary contract and did not have sufficient service to bring an unfair dismissal claim. There was a bonus scheme in operation whereby an employee could earn up to £20 extra per week if his work was of a satisfactory standard.  However, it was explained to workers that the bonus was liable to be deducted if any mistakes were made.

As a result of a faulty door being delivered to a customer the claimant lost £10 of his bonus, and he accepted his mistake led to the defect. The claimant alleged he was discriminated against because of his race based on a number of alleged incidents including being repeatedly shouted at, but his claim largely focused on his dissatisfaction with the reduction in his bonus. He repeatedly complained to management about the scheme in operation, despite being told of its operation and justification. The tribunal held that the claimant had not been ‘singled out’ because of his race and that he couldn’t prove facts from which it could conclude that race discrimination occurred.

Practical Lessons

The claimant brought a weak case with no evidence that he was targeted because of his race. However, a running theme of the case appeared to be the claimant’s confusion about how the bonus scheme operated/its application to him.

The respondent was sure that all relevant staff had been aware of it but a documented note as to who was present/what was explained would have provided even greater protection to the respondent. The respondent did, however, meet with the claimant to explain why his bonus was reduced and this approach, rather than merely deducting it from his payslip, certainly reflects good practice.

The operation of bonus schemes can be surprisingly complex, yet case law has shown that employers do enjoy discretion, so long as they do not act ‘irrationally’ in deciding how bonuses are awarded/taken away. Bonus schemes can often be expressed through the written contract of employment but, if not, an employer should take care to ensure employees understand exactly how it operates and communicate effectively with them when issues arise.

This case review was written by John Taggart BL. NI Tribunal decisions are available on the OITFET website:
http://www.employmenttribunalsni.co.uk/