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Bonus payment letter template

2 minute read
£ 15

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

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.

Bonus payment letter template
bonus payment letter template

What legal and best practice aspects should employers be aware of?

  • 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.

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]

Direction

The Bonus payment letter template is issued by an employer
Employer
Issue path
The Bonus payment letter template is issued to an employee
Employee

Timing

As soon as possible after a decision is made, and prior to payment.

Related articles

Who are some Companies who utilise our Bonus payment letter template?
  
Why buy our Bonus payment letter template?
  • You save time and effort with a professionally written, editable HR document that is tailored to meet best practice.
  • You ensure compliance with applicable ACAS Codes of Conduct and other legal requirements.
  • You are notified by email whenever this template or its supporting resources are updated.
  • You enjoy 12 months of unlimited access with no hidden fees or extra costs.
  • You unlock a 25% discount on all future purchases or renewals of our libraries, toolkits, and templates.

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