How to register in employment agreement award

Award in an employment contract can be assigned in two main ways. The first involves the establishment of criteria and size of bonuses directly in the text of the Treaty, and the second is in reference to internal legal act of the employer governing the promotion of employees.

Modern organizations give out awards in several ways, and not all of them are legal. Often bonuses, the employer simply does not resolved, and rewards the Manager gives in its sole discretion, does not reflect them in the reporting. In this case, the award is not part of wages, and workers do not know the clear criteria of awarding and results in which they can expect to receive premium. In such a situation the award in an employment contract to register is not necessary, because the mention of her will cause a lot of issues. If the award is issued systematically, and to get it you have to meet certain goals, then you can use two method of fixation of the payments in the employment contract.

Method 1: link to internal legal act

This method is most common used in companies with a large number of employees and developed a system of bonuses. In this case, the employment contract merely referred to the possibility of receiving employee bonuses and shall bear a reference to the internal legal act, which regulated the bonus system. As such an act is usually a provision on labor payment of or provision for bonuses. It is usually fixed, common for all employees or groups of employees, the criteria for receiving the award. The employer should note that in this case, the award becomes part of wages that have to be paid, if the employees provide their labor due to the result. Delay or non-payment of the award in this case would mean non-payment of wages, for which the responsibility is established.

Method 2: specific criteria for awarding of the agreement

This method consists in prescribing a specific premium amount for the employee, which can be installed in fixed amounts or ratios in salary. In the contract are fixed criteria and conditions for receiving bonuses and other required employer settings. The application of this method is typical for small firms, individual entrepreneurs who do not have a separate local act on bonus payments. In large organizations, this method is rarely used, the only exception is the establishment of special conditions for a particular employee, which differ from the General provisions on bonuses, captured in internal act.