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Bonuses (production) policy

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Use this policy to detail how the production bonus scheme works, including eligibility and payments.

Reading time
How long to understand and implement this policy?
5 mins
Word count
How many words in this policy?
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What is a Bonuses (production) policy?

The purpose of this Bonuses (production) policy is to provide you with a flexible and customisable document to serve as a robust and effective starting point for you.

By using our Bonuses (production) policy, you can streamline your process, maintain consistency and accuracy, and save time, and it can be easily adapted to fit your specific scenario.

Best practice timescale for this to be issued
When should this policy be issued?
During onboarding / after changes / planned refresher
Issued by who, to whom
Who should issue this policy, and to whom?
Internally issued to appropriate recipients in your Company
Applicable legal jurisdictions
In which jurisdictions can this policy be used?
Great Britain & NI (United Kingdom), Worldwide

Bonuses (production) Policy


The purpose of this policy is to detail company / employee bonuses.


This policy is applicable to all employees of [company name].

General principles

You shall be entitled to participate as from [date] in the production-based bonus scheme for the time being in force. The rules of the scheme may be varied from time to time at [Company]'s discretion. The details of the bonus scheme can be found in [the staff handbook.]

[Company] reserves an absolute discretion to terminate the bonus arrangements applicable to you without notice at any time or to exclude you from participating in the bonus arrangements for any reason.

The intention of the bonus scheme is to stimulate motivation and provide a fair return for additional effort. However, there are circumstances when payment may not be justified or possible. Consequently the scheme is defined as discretionary and ex gratia and does not form part of your contract of employment.


You will be entitled to receive a bonus calculated by reference to the number of units you produce each [week/month] in excess of your agreed production threshold. Bonus payments will normally be paid with your [weekly/monthly] wages within one month of exceeding your agreed production threshold. Bonus payments will be taxed at the same rate as normal remuneration. [Company] reserves the right to terminate or amend the bonus scheme without notice at any time or to exclude you from participating in the bonus scheme for any reason.

The bonus will be paid at a rate of [[amount]p per unit] for [the first [number] units] produced above target and [[amount]p per unit] for any additional units produced above target. [The bonus will be paid based on work performed during the peak season, which begins on [date] and ends on [date] of each year.]]

This policy [does not] form[s] part of your terms and conditions of employment.

Version: [1.0]

Issue date: [date]

Author: [name, job title]

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Bonuses (production) policy
bonuses (production) policy