Cutting Back on Perks and Other Non-Essential Benefits

Originally published August 2010

Despite some more positive economic forecasts, companies are still looking to make cut-backs where they can. Understandably the provision of perks and non-essential benefits may be in the firing line.

Non-essential benefits can be anything from a bonus, medical coverage or car allowance to things as small as a daily newspaper, lunch-vouchers, tea and coffee. It is also worth noting that employee entitlements to a bonus or benefit payments are referred to under the Payment of Wages Act 1991. The definition of "wages" under the Act includes "any fee, bonus or commission referable to that employment whether payable under his contract of employment or otherwise". It could be argued that a broad spectrum of discretionary benefits may be encompassed by this definition.