Bonus Eligibility Policy

Author: Steven J. Luckner, Ogletree Deakins

When to Use

Bonus compensation is a strategic form of compensation designed to maximize business outcomes by rewarding employees for good practice, exemplary performance and other positive business results. Defining when an employee is eligible for a bonus payment is important to both the employee and the employer because it is often a meaningful portion of an employee's overall compensation.

An employer is generally not required to offer bonus compensation. However, an employer should consider implementing this policy if it plans to offer bonus compensation as part of its total rewards strategy to ensure employees understand the circumstances under which they are eligible to receive a bonus.

Customizable Policy