Contracts - Employee Entitled to Summary Judgment for Bonus Payment

Originally published May 2010

In the recent case of Khatri v Cooperatieve Centrale etc. an individual was employed under a written contract which included provision for a performance-related bonus to be paid each year-end calculated on the basis of a formula. The claimant employee was sent a letter containing new contract terms including a provision that bonuses would now be payable entirely at the employer's discretion rather than on a performance basis. He did not sign the letter, nor was he pressed to do so and his duties did not change. At the year-end he was made redundant and he sought a swift "summary judgment" in court on the basis of relevant documents for payment of the (substantial) performance-related bonus.