Claimant v Spire Global UK Limited
Outcome
Individual claims
Claimant claimed he was entitled to bonus of £151,800 (60% of base salary) for 2023. Tribunal found bonus was discretionary under contract, based on company and individual performance. Respondent suspended bonus payments in November 2023 due to poor company performance. Claimant accepted this at the time. Employee Short-Term Incentive Plan (adopted May 2023, backdated to January 2023) gave authorised officers discretion over bonus awards. Claimant failed to prove bonus was 'properly payable'. No senior leadership team members received 2023 bonuses, consistent with treatment of claimant.
Facts
Claimant, a US-based senior executive, was recruited in November 2022 as Global Head of Space Services for UK-based technology company. His contract provided annual salary of £253,000 plus performance bonus of 60% based on company and individual performance. In November 2023, CEO informed leadership team that 2023 bonuses were 'suspended for now' due to poor company performance. Claimant accepted rationale but expressed concern about personal finances. He was dismissed in July 2024. No 2023 bonuses were paid to any senior leadership team members. Claimant claimed he was entitled to £151,800 bonus.
Decision
Tribunal found bonus was discretionary under contract and under Employee Short-Term Incentive Plan adopted in May 2023. Company's poor performance in 2023 justified suspension and non-payment. Claimant accepted rationale at the time. No clear commitment was made to pay bonus later. Claimant failed to prove bonus was 'properly payable'. Claim dismissed. Tribunal also rejected time bar argument given respondent's statement that bonus was 'suspended for now' created reasonable expectation claimant would wait for clarification.
Practical note
A contractual bonus clause stating an employee is 'eligible' for a bonus based on company and individual performance, subject to a subsequently-adopted discretionary bonus plan, will not create an entitlement to payment where company performance falls below expectations, even if the bonus has been paid in previous years.
Legal authorities cited
Statutes
Case details
- Case number
- 8001490/2024
- Decision date
- 2 April 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Sector
- technology
- Represented
- Yes
- Rep type
- lay rep
Employment details
- Role
- General Manager and Global Head of Space Services Division
- Salary band
- £100,000+
- Service
- 2 years
Claimant representation
- Represented
- No