Bonus payment letter template
Our Bonus Payment Letter Template ensures clear communication of bonus details, avoiding confusion and promoting employee satisfaction.
- 1 page / 142 words.
- Last updated 28/07/2023.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Bonus payment letter
[Sender 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
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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.
It is usually delivered to the Employee by the Employer / HR.
It should be actioned as soon as possible after a decision is made, and prior to payment.
Compliance
Compliance
This Bonus payment letter template incorporates relevant UK laws and HR standards, including those listed below:
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Employment Rights Act 1996: Ensures that employees receive a written statement of their pay, which should include details of any bonus payments.
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Equality Act 2010: Prohibits discrimination in bonus payments based on protected characteristics, such as gender, race, age, or disability.
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Working Time Regulations 1998: Sets limits on working hours and ensures that bonus payments comply with regulations regarding overtime and working time.
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National Minimum Wage Act 1998: Ensures that bonus payments do not cause an employee's pay to fall below the minimum wage.
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Data Protection Act 2018: Ensures that employee data related to bonus payments is handled securely and confidentially.
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Employment Contracts and Bonus Policy: The letter template should align with the terms of employment contracts and any bonus policies mentioned therein.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Bonus payment letter template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
