Is an employee entitled to receive any bonuses which may fall during parental leave?
Payments of bonuses during parental leave can be a complicated area, where independent legal advice should be sought. Whether a bonus is payable to an employee on parental leave depends on the type of bonus and the terms of the particular bonus scheme. Generally, however, an employee will be entitled to the bonus if it relates to performance or work already done prior to his or her parental leave. An employee is unlikely to be entitled to the bonus if it is a reward for future work or performance, during a period in which the employee would be absent on parental leave. In drawing up the terms and conditions of any bonus scheme, employers should take particular care not to indirectly discriminate on grounds of sex against those employees taking parental leave. Further information about sex discrimination can be found in the booklet Sex Discrimination: a guide to the Sex Discrimination Act 1975 (PL 955).
