Discretionary bonuses vs. Non-discretionary bonuses

Speaking of bonuses, they are divided into two categories which are Discretionary bonuses and Non-discretionary bonuses.

Discretionary bonuses are non-guaranteed bonuses an employee receives at the discretion of an employer. These bonuses are not detailed in an employment contract thus they are unexpected and there is no criteria for an employee to get them. An employer can decided to give or not to give them to an employee because it is not a part of the agreement in an employment contract.

Non-discretionary bonuses are guaranteed bonuses an employee receives when he or she meets the qualifications or conditions stated in an employment contract.

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