Posted by Gemma Ospedale, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Announcment of bonus pool contractually binding
The case of Attrill and others v Dresdner Kleinwort Limited and another has progressed from the High Court to the Court of Appeal on whether or not the announcement of a bonus by the bank meant this was contractually binding. The Court of Appeal has now given its decision on whether or not the bank’s announcement of a guaranteed minimum bonus pool of 400 million euros created a contractually binding obligation to determine bonuses by reference to that pool. The Court of Appeal upheld the High Court decision that this was a contractually binding obligation and the bank could not rely on the use of the term “absolute discretion” in the employee handbook in relation to whether or not a bonus was awarded. The terms of the bonus were according to individual performance but the manner in which it was announced created a contractually binding obligation.
This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.
For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222
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