Can an employer cap a bonus after telling an employee they've earned it? When does a bonus become a legally enforceable entitlement?
In this episode of The BDBF Podcast, employment lawyers Ben Cowdry and Esmat Faiz explore the Employment Appeal Tribunal's decision in Chandrashekarappa v Wipro Ltd (2026), an important case on bonus schemes and unlawful deductions from wages.
They discuss how the employer introduced a new sales bonus scheme without issuing a formal policy, why an employee expected a bonus of more than £500,000 only to be told it was capped at $150,000, and how the absence of clear written terms ultimately proved decisive.
Ben and Esmat unpack the Employment Tribunal's original decision before examining why the Employment Appeal Tribunal found that the employee's entitlement had already crystallised, preventing the employer from imposing additional conditions after the event.
Listeners will gain practical guidance on:
- When a bonus becomes a legally enforceable entitlement
- Why clear, written bonus policies are essential
- The risks of introducing new conditions after a bonus has been approved
- How the law on unlawful deductions from wages applies to bonus payments
- Practical lessons for employers designing and implementing incentive schemes
For employment lawyers, HR professionals, in-house counsel and employers, this episode provides valuable insight into drafting and administering bonus schemes while reducing the risk of costly disputes.
Disclaimer: Views of external guest speakers do not represent those of BDBF.
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Ben Cowdry
Ben advises both employers and employees on contentious and non-contentious matters. Ben’s experience ranged from negotiating severance packages and advising on disciplinary matters to pursuing Employment Tribunal claims for unfair dismissal and discrimination. Ben also has experience in advising on and drafting employment contracts and workplace policies. Ben enjoys negotiating favourable outcomes for his clients, whether through alternative dispute resolution or litigation.
linkedin.com/in/ben-cowdry-7548a8196
Esmat Faiz
Esmat is an experienced solicitor who advises senior employees and employers on complex and sensitive workplace issues, delivering clear, strategic guidance to achieve practical and positive outcomes.
She provides guidance to employees on disciplinary processes, grievances, workplace investigations and negotiated exits, always ensuring her clients feel supported and confident throughout challenging situations. Esmat has extensive experience handling whistleblowing claims and discrimination matters across a wide range of grounds, including disability, age, pregnancy and maternity, sex and race, both prior to and in the course of Employment Tribunal claims.
She was promoted to Senior Associate in 2026 in recognition of her technical excellence and client care.
https://uk.linkedin.com/in/esmat-faiz-1348502a
