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Bonus payment letter

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Our Bonus Payment Letter Template ensures clear communication of bonus details, avoiding confusion and promoting employee satisfaction.

Reading time
How long to understand and implement this letter?
5 mins
Word count
How many words in this letter?
142
We also have budget-friendly bundles featuring this template:

What is a Bonus payment letter?

An employee bonus payment letter is a document that confirms the details of a bonus payment made to an employee by their employer.

This letter is typically sent to the employee to acknowledge the bonus payment and to provide information on the amount of the bonus, the reason for the bonus, and any other relevant details. The purpose of the letter is to formally recognise the employee's contribution to the company and to motivate them to continue their hard work.

It is also a way for the employer to communicate the terms and conditions of the bonus payment and to ensure that there are no misunderstandings or disputes regarding the payment.

Best practice timescale for this to be issued
When should this letter be issued?
As soon as possible after a decision is made, and prior to payment
Issued by who, to whom
Who should issue this letter, and to whom?
The Employer (you) to the Employee
Applicable legal jurisdictions
In which jurisdictions can this letter be used?
Great Britain & NI (United Kingdom), Worldwide

What legislation and best practice guidelines have been taken into account in the development of this template?

United Kingdom

  • Employment Rights Act 1996: Ensures that employees receive a written statement of their pay, which should include details of any bonus payments.

  • Equality Act 2010: Prohibits discrimination in bonus payments based on protected characteristics, such as gender, race, age, or disability.

  • Working Time Regulations 1998: Sets limits on working hours and ensures that bonus payments comply with regulations regarding overtime and working time.

  • National Minimum Wage Act 1998: Ensures that bonus payments do not cause an employee's pay to fall below the minimum wage.

  • Data Protection Act 2018: Ensures that employee data related to bonus payments is handled securely and confidentially.

  • Employment Contracts and Bonus Policy: The letter template should align with the terms of employment contracts and any bonus policies mentioned therein.


Other territories

Consult your jurisdiction's employment legislation or labor laws to ensure compliance with the template. Review the language for local precision.

Bonus payment [Delete this line]

[Company name]

[Sender address]

 

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

 

Bonus payment

I am pleased to inform you that you have been awarded a bonus for your exceptional performance during the past year. Your dedication and hard work have not gone unnoticed, and we are pleased to reward your efforts.

The bonus amount is [Insert bonus amount], which will be added to your next salary payment. The bonus is subject to the usual tax and NI.

We appreciate your continued commitment to [Company ], and we hope that this bonus demonstrates our appreciation for your contributions. We are proud to have you as part of our team, and we look forward to your ongoing success with the company.

If you have any questions or concerns about the bonus, please do not hesitate to contact me.

Once again, congratulations on your well-deserved bonus, and thank you for your hard work and dedication to the company.

Yours [faithfully | sincerely],

 

 

[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

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bonus payment letter