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COMMISSION PAYMENTS: Making sure everyone gets their fair share

29 April 2016  

A Court of Appeal ruling highlights the difficulties employers face in asserting absolute discretion over commission or bonus awards. Stephen Ravenscroft and Jo Bennett report

Disputes about remuneration often involve an employee challenging their employer’s decisions on bonus and commission awards. In the most recent case in this area, Hills v Niksun Inc [2016], the Court of Appeal unanimously decided that an employee was entitled to a higher commission payment than the amount he had been originally awarded. In doing so, it gave a highly purposive construction to the detailed commission plan documentation despite broad statements of the employer’s discretion.

Additional Info

  • Case(s) Referenced:

    Braganza v BP Shipping Ltd [2015] UKSC 17

    Brogden v Investec Bank plc [2014] EWHC 2785

    Hills v Niksun Inc [2016] EWCA Civ 115

    Keen v Commerzbank AG [2006] EWCA Civ 1536