The LAW STORY law firm is representing a management staff member in an employment dispute with a Lebanese-owned commercial company. The claims being pursued include a bonus awarded and unpaid to the employee, as well as sales commissions for several years. 

For many employees, bonuses are a significant element of remuneration – motivating, often discretionary, and sometimes linked to team or company performance. But what if the bonus was awarded but the employee did not receive it? Can they demand payment? What rights do they have?

Types of Bonuses – Key to Analysis

First, it's important to distinguish between the different types of bonuses, as this determines whether the employee can effectively pursue a claim in court.

Statutory Bonus/Claim Bonus

This is a bonus that is predetermined in the employee's work regulations, collective agreement, employment contract, or internal regulations. When an employee meets certain conditions (e.g., meeting targets/KPIs, maintaining absences, or achieving team performance), they become entitled to the bonus. If a bonus is not paid, the employee can effectively pursue their claims in an employment tribunal.

Discretionary Bonus

This is a bonus whose award depends solely on the employer's discretion. Even if it was announced or took place in previous years, the employee is not guaranteed to receive it until it is formally awarded. If a bonus is awarded (e.g., by email, in writing, in the HR system), it becomes a due benefit, and failure to pay it may constitute a violation of labor law.

What can an employee do if a bonus is awarded?

If a bonus has been awarded but not paid, the employee may:

(i) submit a written demand for payment—preferably with reference to the specific bonus award decision.

(ii) file a lawsuit in an employment tribunal—for payment of the outstanding bonus, along with statutory interest.

(iii) report the violation to the National Labor Inspectorate (PIP)—if the problem affects a larger group of employees or is systemic in nature.

Employer, beware!

Failure to pay an awarded bonus:

(i) may be considered a breach of fundamental obligations towards the employee (which may result in termination of the contract due to the employer's fault),

(ii) affects morale and trust within the team,

(iii) exposes the company to class action lawsuits, interest, and reputational damage.

If a bonus was officially awarded—regardless of whether it was statutory or discretionary—the employee has the right to demand it. If payment is denied, it is advisable to seek legal advice.

Failure to pay an awarded bonus can have real legal consequences for the employer.