Commission and bonus schemes are designed to reward performance and motivate staff. However, disputes often arise when the terms of such schemes are unclear or payments are withheld.
At Warner Goodman LLP, our Employment team can help you understand your rights around commission and bonus schemes, address any disputes with your employer, and, if necessary, guide you through the next legal steps with clarity and confidence
What Are Commission and Bonus Schemes?
Many employees are unsure exactly what they are entitled to when it comes to commission or bonus payments. These schemes can take different forms and may be either guaranteed or discretionary, so understanding how they work is essential to protecting your rights and ensuring you receive the payments you have earned.
Commission schemes
These are payments tied directly to your performance, often based on achieving targets, meeting specific goals, or completing certain tasks. Commission is most common in roles such as sales, recruitment, property, or finance, where output can be measured and rewarded. Depending on your contract, commissions may be guaranteed if targets are met or paid at your employer’s discretion.
Bonus schemes
Bonuses are additional payments that reward employees beyond their normal salary. They can be awarded for individual performance, team achievements, or company-wide success, and may take the form of cash, gift vouchers, extra leave, or even company shares. Like commission, bonuses can be contractual, meaning you are entitled to payment once criteria are met, or discretionary, meaning your employer decides if and when they are paid.
Common Issues With Commission and Bonus Schemes
Employees frequently encounter problems such as:
- Non-payment of contractual commission or bonuses
- Disputes over performance targets or entitlement
- Changes to schemes without consultation
- Commission clawbacks or repayment clauses
- Discrimination or unfair treatment linked to bonus or commission decisions
- Termination of employment before payment is made
These issues can have a significant impact on your earnings and workplace rights. Understanding the potential problems and knowing your options is essential if you believe your employer has failed to honour your commission or bonus entitlements.
Your Rights as an Employee
Under UK employment law, employees have the right to receive any commission or bonus payments they are contractually entitled to, and even discretionary payments must be applied fairly and consistently:
- If your bonus or commission is contractual, your employer must pay it once the criteria are met.
- Discretionary bonuses must still be awarded fairly and consistently, without discrimination.
- Repeated discretionary payments may create an implied entitlement.
- Unlawful deductions or withheld payments may give rise to a claim for breach of contract or unlawful deduction of wages.
Employees may also have claims related to unfair dismissal if termination is linked to bonus or commission payments.
How We Can Help
Our Employment Law specialists support employees across a wide range of industries who face issues with commission or bonus schemes. We can:
 | | Review your employment contract and bonus/commission agreements |
 | | Assess whether your employer has failed to meet their obligations |
 | | Advise on your legal options, including negotiation, internal grievance procedures, or Employment Tribunal claims |
 | | Represent you in Employment Tribunal proceedings, if necessary. |
 | | Provide practical, tailored advice to resolve disputes efficiently. |
We understand how stressful unpaid bonuses or commission disputes can be, and we are committed to achieving outcomes that protect your income, career, and future opportunities.
Frequently Asked Questions
Yes. Your entitlement depends on the terms of your employment contract and the specific bonus scheme. Many schemes require employees to be actively employed at the time of payment, but some pro-rata arrangements may apply. It’s important to review your contract or seek legal advice.
Employers can amend schemes, but changes must be reasonable and communicated clearly. If a change reduces an already promised or contractual payment, you may have grounds to challenge it.
You are generally entitled to the correct amount once the error is identified. Employers should correct overpayments or underpayments in line with their contractual terms, and legal advice can help resolve disputes over miscalculations.
Non-cash bonuses are still considered part of your remuneration. Your entitlement and the employer’s obligations are usually outlined in your contract, and the same principles around contractual and discretionary payments apply.
Yes. UK law requires that part-time or fixed-term employees are not treated less favourably than comparable full-time staff. Bonuses should typically be distributed where appropriate.
Claims for unpaid wages, including commission and contractual bonuses, usually need to be brought within three months (less one day) to an Employment Tribunal. For breach of contract claims, the time limit is typically six years.
Yes. Commission and bonus arrangements can be negotiated before you accept an offer. Make sure any agreed terms are clearly documented in your employment contract.
Retaliation, such as dismissal or unfair treatment, is unlawful. Depending on the circumstances, you may have additional claims for victimisation or constructive dismissal.
Why Choose Warner Goodman LLP?
Navigating commission and bonus schemes, performance incentives, and related employment matters can be complex, leaving you uncertain about your entitlements. Our specialist employment solicitors in Hampshire provide clear advice, practical support, and expert representation throughout the process of reviewing, negotiating, or enforcing your commission and bonus agreements.
We offer a proven track record in handling employee incentive disputes, with benefits including:
 | | Over 170 years of combined experience in employment law for employees across all sectors |
 | | High success rate in advising on commission and bonus disputes, clawbacks, and related claims |
 | | Transparent pricing so you always know what to expect |
 | | Clients rate us ‘excellent’ on reviewsolicitors.co.uk, based on over 1,000+ verified reviews |
 | | Fully regulated and authorised by the Solicitors Regulation Authority (SRA) |
With Warner Goodman LLP, you can rely on a team that is experienced, approachable, and dedicated to protecting your rights and achieving the best possible outcome for every client.
Speak to Our Employment Law Experts
If you are facing disputes over unpaid commission or bonuses, reviewing your existing incentive scheme, or are unsure about your entitlement, it’s important to get specialist legal advice. Our experienced solicitors can guide you through every stage — from reviewing your contract and bonus scheme to negotiating payments and, if necessary, representing you in an Employment Tribunal — ensuring your rights are protected, and your income is secured.
We assist employees across Hampshire and beyond, with offices conveniently located in Southampton, Portsmouth, Fareham, Chandler's Ford, and Waterlooville. You can choose to meet with us in person or arrange a remote consultation at your convenience.
Call: 023 8063 9311
Email: employment@warnergoodman.co.uk
Alternatively, complete our online enquiry form to request a confidential callback.