The Cleary case came before the High Court by way of an appeal under the Payment of Wages Act 1991. The Appellants were employees of B&Q. They challenged the employer’s retrospective discontinuance of a bonus scheme and the withdrawal of a 'zone allowance' payable to staff at three Dublin outlets in recognition of the higher cost of living in Dublin.
The case is of importance for its consideration of three questions:
What does the word ‘discretionary’ mean when used in a bonus scheme?
If a contract permits unilateral variation of the contract by the employer, does that mean that the employer can make a variation with retrospective effect?
What is an ‘expense’ within the meaning of the Payment of
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DisclaimerThe information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.This article is correct at 23/03/2016
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