How discretionary are discretionary bonuses?
It is quite common for employment contracts, especially for senior employees or executives, to have provision for a bonus at the employer’s sole or absolute discretion.
However, the recent decision by the Supreme Court of Victoria in Crowe Horwath (Aust) Pty Ltd v Loone [2017] VSC 163 (Crowe Howarth) shows that such clauses might not mean that employers will have an unfettered discretion in deciding whether to pay bonuses.
It is a reminder that employers need to exercise […]