Understanding your pay

4. Performance-related pay

Your employer should base your performance-related pay on clear, measurable targets - they should tell you about these.

There are 2 main types of performance pay:

• short-term schemes, like bonus payments or sales commission
• long-term schemes, like company shares

Non-payment of bonuses or commission

If you don’t get a bonus or commission you’re owed and you think there’s been a mistake:

• speak to your employer to see if there’s been a misunderstanding
• ask them set out in writing how they’ve calculated your pay
• keep copies of any letters and notes of any meetings

If a bonus or commission is included in your contract, non-payment is a breach of contract. You can get help with making a complaint.

Non-payment of bonuses may also be covered legally under:

• unlawful deductions from wages - eg you’re entitled to payment but it hasn’t been given
• unlawful discrimination - your employer must not discriminate against particular groups, for example giving smaller bonuses to women

You can get advice from Acas (Advisory, Conciliation and Arbitration Service), Citizens Advice or your trade union representative.

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