Success cases

Bonus Payments: Employer's Right or Obligation?

Date: 30.09.2026

The Matter

Whether an employer is bound to pay bonuses — or whether such payments remain entirely at its discretion — was the question confronting the legal team at KIAP. The task arose from a review of the employer's extensive body of internal policies and its employees' contracts of employment. Having examined the documents, the team concluded that year-end bonuses were not contractually guaranteed, and proceeded to defend the employer against the claims brought by its workforce.

The Mandate

The KIAP team began by reviewing the employer's internal policies and procedures for compliance with employment legislation, assessing the company's financial standing, and identifying the factual circumstances that bear on whether the employer was under any obligation to pay bonuses.

The legal position was then set out in the team's court submissions. Despite the intricate conditions governing the payment, calculation, and accrual of bonuses, the arguments were presented in clear, accessible terms. The final stage involved representing the client through every tier of the proceedings — at first instance, on appeal, and in the court of cassation.

Approach and Outcome

In employment disputes, the employee is generally regarded as the weaker party, and the burden accordingly falls on the employer to satisfy the court that the claims against it are without merit. The KIAP team discharged that burden: they prepared and substantiated a compelling defence, and all three courts accepted their position.

Team

The matter was handled by Partner Julia Paushkina, Senior Associate Dmitry Kazankov, and Junior Associate Eleonora Akopyan.