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ILN Today Post

Court of Appeal supports High Court decision to interfere with employer’s wide discretion over commission payments

How should employers exercise their discretion over discretionary commission or bonus payments?

In the recent case of Hills v Niksun Inc., the Court of Appeal explained that even where contractual documents state that an employer retains absolute discretion over the amount of any commission paid, this is subject to the terms of any additional documents or established practice. It supported the High Court decision to interfere with an employer’s discretion in appropriate circumstances.

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