Employee Benefit Packages
Employee Benefit Packages: Introduction
Benefits other than basic salary can constitute a significant part of the employee's remuneration package, in particular in the case of senior appointments.
Such benefits include share options and share incentive schemes; cash-based benefits such as bonuses or profit-related pay; and benefits in kind such as company cars, loan schemes, medical insurance and living accommodation.
It is important to consider and agree whether the benefit is a contractual right (in respect of which your failure to provide will amount to breach of contract on your part) or whether giving or withholding the benefit is within your discretion. "Practice and Custom" can particularly in respect of bonuses, however, turn a discretionary benefit (expressly stated in the contract to be at the employers' absolute discretion) into a contractual benefit.