Human Resources

University Policy on Bonus Payments

Policy No.
UP07/216
Function
Human Resources
Authoring Organisational Unit
Human Resources - Central Unit
Date Approved
26/06/2007 Revised 27/06/2014
Next Review Date
29/11/2014
Approving Body
Senior Deputy Vice-Chancellor And Registrar

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The University of Western Australia

University Policy on: Bonus Payments

Purpose of the policy and summary of issues it addresses:

This policy defines the nature and purpose of Bonus Payments, which will be considered to recognise outstanding performance or on achievement of negotiated stretch outcomes. It sets out eligibility criteria and other conditions that apply.

This policy does not apply to casuals.

Definitions:

"Approved Delegate" means a position granted authority to act on behalf of the Vice Chancellor with varied levels of authority in line with the University's Delegations.

"Base Salary" means the salary point in the relevant University salary scale paid to the employee concerned.

"Employee" means a person employed by the University.

"PDA" means Performance and Development Appraisal.

"Supervisor" means the person who is responsible for day-to-day supervision of the employee.

"University" means The University of Western Australia.

Policy statement:

This policy describes the purpose and principles unique to bonus payments. The policy must be read in conjunction with University Policy: Discretionary Allowances & Payments, which defines the core principles, approval, review and governance and accountability requirements common to all discretionary allowances.

A comparison table of discretionary allowances, which can be used to determine which allowance is applicable to a particular circumstance, can be found at Overview of Discretionary Allowances.

1 Nature of Allowance

Bonus payments are not for recognition of meeting the expected requirements of a role. These payments are for outstanding performance beyond the expectations of the role.

1.1 Bonus Payments are a flat sum one-off payment which would not normally exceed 5% of base salary.

1.2 The bonus may also be paid as a non pecuniary benefit such as -

  • payment to a research account (academics)
  • study assistance
  • conference attendance, and/or
  • other professional development opportunities.

1.3 Bonus Payments attract 9% employer superannuation contribution into an accumulation account.

2 Eligibility

2.1 A Bonus Payment may be recommended when -

  • overall outstanding performance has been demonstrated. The PDA will be the appropriate mechanism for this assessment,
  • negotiated stretch outcomes have been achieved, or
  • on completion of a particular discrete task beyond the normal expectations of the role.

2.2 Bonus Payments should recognise the contributions of staff at all levels, not just those who, for a particular reason at the time, have a higher profile than their colleagues.

2.3 Bonus Payments can be paid either to an individual or to a group.

3 Application Process

3.1 Written requests for bonus payments should include a detailed justification for the remuneration and be forwarded to the Dean (or equivalent) by the Head of School/Section or supervisor.

3.2 Deans (or equivalent) will be responsible for -

3.2.1 formally assessing applications;

  • Where the amount of the Bonus Payment is up to and including $10,000, approval may be granted by the Dean or equivalent.
  • Where the amount of the Bonus Payment is greater than $10,000, the application will be assessed by the Dean before sending to Human Resources, who will submit the application to the Standing Remuneration Committee for approval.

3.2.2 forwarding all applications to HR Services-Employment with the accompanying Discretionary Allowances Form.

The Discretionary Allowances Form is to be forwarded to HR Services-Employment, detailing:

- confirmation of the employee's outstanding performance (either generally or in relation to a specific task) and on what basis it has been considered as exceptional and deserving of a bonus,

- the extent to which all employees are given equal consideration for rewards and recognition in the business unit and having regard to achievement relative to opportunity, and

- the amount/increment level of the proposed bonus or details of the non

monetary bonus to be provided.

Related forms:

Discretionary Allowances Form

TRIM File No:

F43240

Contact position:

HR Services-Employment

Related Policies or legislation:

Related Policies or legislation:

Performance Appraisal Report - Policy and Procedures

Professional Development Review - Policy and Procedures

Overview of Discretionary Allowances

University Policies on:

Discretionary Allowances

Market Allowance

Retention Allowance

Performance Allowance

Attraction Allowance

UWA Code of Ethics and a Code of Conduct

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