Benefit packages can help you keep your workforce positive, motivated, committed and loyal. They can even help a business succeed in achieving its targets - for example

• Commission schemes enable employees to earn a higher wage proportionate to sales they achieve on behalf of the business
• Profit related pay (PRP) matched to targets enables employees to share in the profit of the business

However, businesses should be aware that the advantage of rolling out such packages can be eroded by poorly written schemes and contracts.  At worst, this can lead to an expensive claim in the Courts and Employment Tribunal.

For help and advice on setting up an employee benefits scheme, or for guidance on what to do if you are facing allegations of poorly written contracts, contact Clough & Willis on 0800 083 0815, or fill out an online enquiry form.

If you are facing a tribunal due to unfair contracts, common questions you could be asked include:

• Is it a discretionary scheme or a contractual entitlement?
• If it is a discretionary scheme, how is that discretion to be exercised?
• Was the exercise of that discretion reasonable?
• Was the scheme being operated in a discriminatory manner?  
• Do employees on maternity leave have access to the scheme?
• Are agency workers entitled to participate?

These are just some of the issues that should be considered when a scheme is being constructed and implemented.