Incentive plan and bonus payments

Whether bonus payment is discretionary

The employer also tried to argue that under the plan, all employees who left their employment before receiving their incentive payment would no longer be entitled to it - and that, as a result, Ms Wong would not be able to receive a payment.

Is incentive plan seen as end-of-year payment?

The employer's incentive plan therefore provided for a bonus based on a formula, rather than a discretionary bonus. As such, it was an "end of year payment" regulated by the Chapter 8 of Employment Ordinance, and was not payable at the discretion of the employer alone. A pro-rata payment therefore had to be paid to Ms Wong when her employment was terminated.

Disclaimer: This article serves as the provision of general information and reference only. It is not intended to be served or interpreted as any legal advice in any occasion, at any cost. Please seek professional help if you have any relevant legal issue.

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