MKB Juristen drafts custom legal documents
It is best not to cobble together or copy important contracts, terms and conditions, and other legal documents yourself. We help entrepreneurs on a budget with customized legal solutions, clear costs upfront, and practical explanations.
- Custom contracts, terms and conditions, and legal documents
- Budget-friendly and clear about the costs upfront
- Request a free consultation or a no-obligation quote
In principle, an employer is free to award bonuses, but must act as a good employer: the bonus policy must not discriminate or be arbitrary, and you must be able to justify any differences. If you agree on a bonus or profit-sharing scheme, you are bound by it. Please note: if you award the same bonus for years based on a fixed target, it may become an acquired right that you must continue to pay.
You are free to give employees bonuses, and this has benefits: it motivates, increases engagement, and helps persuade candidates. If you wish to award bonuses or make agreements regarding them, seek legal advice first.
Award bonuses freely — with limits
In principle, there are no rules: you decide for yourself whether to award a bonus and may set your own targets. However, you must act as a good employer, so the bonus policy must not discriminate or be arbitrary. If Pieter and Jan perform equally well in the same position, it is unfair for only Pieter to receive a bonus.
That does not mean that everyone must receive a bonus: you may take targets and positions into account, but you must be able to clearly justify why one person does and another does not — that justification is assessed against good employer practices.
Pay attention to bonus and profit-sharing schemes
A bonus is a voluntary choice, but if you agree on a bonus scheme, you must adhere to it: it usually states when and how much the bonus is, and you cannot simply deviate from it.
A common example is the profit-sharing scheme: employees receive a share of the profit. It specifies what constitutes profit, and how and when it is paid out and distributed. Advantage: if there is no profit, you do not have to pay a bonus. Disadvantage: you can no longer deviate from it, for example if you prefer to invest the profit.
A voluntary bonus can become involuntary
An unagreed bonus can also become part of the employment contract . If you have been awarding a fixed bonus for years upon meeting a specific target, reasonableness may require you to do so again this year if the target is met. An employee who does not receive the bonus can file a wage claim.
Frequently Asked Questions
Can I decide who gets a bonus?
Largely yes, but within the boundaries of good employership: no discrimination, no arbitrariness, and you must be able to justify differences.
Am I bound by a bonus or profit-sharing scheme?
Yes. If you have agreed to such an arrangement, you must adhere to the conditions and cannot simply deviate from them.
Can a voluntary bonus become a right?
Yes. If you award the same bonus for a fixed target for years, it can become an acquired right that you must continue to pay.
Have a bonus scheme drawn up
A good bonus or profit-sharing scheme offers clarity, but the targets must be carefully formulated. The employment lawyers at MKB Juristen assist you with this. View our expertise in employment law or schedule an intake meeting .
