Pay
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Keep the pay clause flexible, refer to a schedule in the contract which can be kept up to date and reissued each time pay is changed. Make sure that clauses on bonus schemes indicate they are discretionary. But it is important to bear-in-mind that even though a bonus may be contractually described as 'discretionary' this does not give managers the right to do what they like. Arbitrary or capricious exercise of a contractual power is likely to destroy the relationship of trust and confidence, causing a breach of contract. This in turn may allow the employee to claim constructive dismissal.
Example Clauses
You will be paid an annual salary as specified in the Schedule. Your salary will be reviewed annually on 1st January each year. The review will be based upon the Company's assessment of the pay market for your job and your performance. It may not necessarily result in an increase in salary.
This
Appointment is on a full time basis without specified hours of
work. You are required to
devote such time to his duties as may reasonably be required, by the Company,
for their proper performance.
Any payment which may become due to you in respect of incentive bonuses will be calculated in accordance with the rules of the scheme in force at that time. If no scheme is in force no liability to pay such a payment will exist.
The Company shall during the continuance of employment pay you a salary as specified in the Schedule attached. Salary levels will be subject to regular review by the Company, but no commitment is made to regular increase.
You may, at the discretion of the Company, be invited to participate in such allowances, bonuses and other benefits (including share option schemes) as may be determined by the Company from time to time.
You
are expected to attend work regularly and promptly.
The Company works a flexible working week to serve its clients.
Your normal weekly working hours are 37.5 hours.
Your supervisor will discuss with you the normal working hours you are
required to work. These may change
if so you will be given reasonable notice
The European Working Time Directive sets a maximum working week of 48 hours. The Company may occasionally need you to work a working week longer than 48 hours. Such working would be very occasional and where possible with your agreement. By signing this agreement you give your consent to working longer than 48 hours, unless you delete this clause.