Mr D Brabon v RJT Window and Exterior Cleaning Limited — 2026

Mr D Brabon started work for RJT Window and Exterior Cleaning Limited in April 2023 as Operations Manager. The Tribunal found that discussions before he started referred to a bonus calculated by reference to gross profit, but the written contract signed on 4 April 2023 was the first and final legally binding agreement on bonus. Clause 9.1.1 and Annex C described a profit-related bonus scheme and stated that the details could be amended or withdrawn at any time.

The Tribunal accepted that the Respondent had genuine concerns about cash flow and the business position, and that those matters were among the factors taken into account when the directors decided in June 2025 not to pay a bonus for 2024-2025. It held that the contractual discretion to amend or withdraw the bonus scheme was not limited to future years. The Claimant's argument that the Respondent could only change the scheme prospectively, and not remove entitlement for the latest year, was rejected.

Applying the contractual discretion principles discussed in the judgment, including the need to avoid irrational or perverse exercise of discretion and to take account of relevant factors, the Tribunal found the decision not to award a bonus was not irrational or perverse and did not involve reliance on irrelevant considerations. It therefore held that there had been no breach of contract. Because there was no legal entitlement to a bonus, the unlawful deduction from wages claim also failed and both claims were dismissed.