Posted by Caroline Doran Millett, 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.
Royds Employment Partner Caroline Doran comments in the Financial Times on the recent Investec £6 million bonus case.
In this bonus claim, Mr Brogden and Mr Reid, 2 Senior Investec traders who launched the profitable Retail Structured Products Unit, alleged they were owed bonuses of £3.6m and £2.7m respectively for the financial year 2010-11.
They had received their guaranteed signing-on bonuses for the first year of £6.2m and £3.8m respectively. The case was based on the interpretation of the written bonus clause and whether there were additional oral contractual agreements regarding the bonus payments. The judge found that the written bonus clause was “elliptical” and while he found the traders were highly talented and not dishonest, their allegations that they had received additional oral promises regarding the bonus were not credible.
Caroline Doran, an employment law specialist at Royds, said that the case demonstrated the difficulties that can arise over oral agreements in bonus disputes. “[It] shows the importance of having a paper trail when the stakes are high,” she said. “If you are getting a promise for millions, get it in writing.”
You can read the full FT article by Caroline Binham, Legal Correspondent here
If you have any questions regarding bonus payments or bonus disputes then contact Caroline Doran, Partner in the Employment Department on 0207 842 1495.
It pays to employ the right employment solicitor