One of the most commonly adopted incentives by employers is the
inclusion of a bonus payment in the remuneration clause. As laws
and regulations generally do not set out mandatory requirements for
the recipients, conditions and the timing of bonus payments,
employers enjoy considerable autonomy in this regard.
It should be noted, however, that this autonomy is not absolute,
and employers' frequent adjustment of bonus benchmarks, or
outright refusal to pay bonuses, have resulted in many
disputes.
On 4 July 2022, the Supreme People's Court (SPC) released
the 32nd group of guiding cases under the theme of "protecting
labourers' lawful rights and interests". Among the listed
cases, Nos. 182 and 183 concern labour disputes over bonus
payments. With reference to these two cases, this article
summarises the adjudication approach and applicable legal standards
so that employers can exercise their autonomy in a regulated,
responsible manner.
