Incentive and Bonus Policy

Incentive and Bonus Policy

Purpose

1.1The purpose of the Incentive and Bonus Scheme is to:

1. 
   Reward employees for their performance and contribution to ACA NSW MEMBER (‘ACA NSW MEMBER’).
   
2. 
   Better educate employees about their individual Key Performance Indicators (KPIs) and how the indicators link to the overall success of ACA NSW MEMBER’s business.
   
3. 
   Increase employee motivation and interest in meeting ACA NSW MEMBER’s goals and reward them outside of the normal remuneration process for achieving or exceeding targets.
   
4. 
   Provide a clear correlation between key performance measures that influence reward and the employee’s ability to influence those measures.
   

Commencement of Policy

1.2This Policy will commence on 3/07/2017. It replaces all other policies dealing with incentive payments and bonuses (whether written or not).

Application of the Policy

1.3This Policy applies to all eligible employees of ACA NSW MEMBER employed in the positions set out below. This Policy does not form part of any employee’s contract of employment.

Meaning of Discretion

1.4Any payment of a bonus or other incentive payment (including determining the amount of such payment) is at the absolute Discretion of ACA NSW MEMBER. 

1.5In this Policy, ‘Discretion’ means that ACA NSW MEMBER has an ability to change this Policy or withdraw the policy at any time for any reason. For example it may act arbitrarily, with any payment being made under the Policy entirely gratuitous and voluntary.

Possible incentive

1.6Subject to the terms and conditions outlined below, employees may be eligible to receive the following incentive payments:

1. 
   EmployeePositionA employees PercentageNumberA% of their gross base annual salary
   

1.7Incentive payments will only be calculated on the employee’s gross base annual salary as at 3/07/2017. Any other employee entitlements or benefits (including, but not limited to overtime payments, shift allowances, payment for accrued long service leave and annual leave, superannuation contributions, allowances, reimbursement for expenses etc) will not be included for the purposes of calculating an employee’s incentive payment entitlement.

Eligibility

1.8Participation in the scheme is open to the employees of ACA NSW MEMBER who:

1. 
   commenced employment with ACA NSW MEMBER on or before 3/07/2017;
   
2. 
   are employed in one of the positions listed above;
   
3. 
   are employed by ACA NSW MEMBER at the Notification Date.
   

1.9Any employee who commences employment with ACA NSW MEMBER after 3/07/2017, may, at the absolute Discretion of management, be able to participate in the scheme on a pro-rata basis.

Payment of incentive

1.10An assessment of each employee’s entitlements to an incentive payment will generally be made on AssessmentDate.

1.11Any employee who has been assessed as being entitled to receive an incentive payment will generally be notified in writing (‘Notification Date’).

1.12Any employee who has been assessed as being entitled to receive an incentive payment will generally receive the incentive payment by PaymentDate.

1.13Incentive payments are stated as gross amounts and are inclusive of any superannuation entitlements. Tax will be deducted according to legislation and the net amount will generally be deposited into relevant employees’ bank accounts, by electronic funds transfer, in the pay period immediately following the decision to pay an incentive payment.

Other available bonuses

1.14In addition, ACA NSW MEMBER at its absolute Discretion, may from time to time, reward individual employees throughout the term of the scheme, for performance and/or conduct, which in the opinion of management, warrants additional reward.

1.15Other available bonuses may include:

a)NameOfOtherBonuses.

Conditions

1.16Payment of an incentive payment to employees is dependent upon:

a)ACA NSW MEMBER meeting its revenue performance goals during the term of the scheme, so it will make a sufficient profit to meet the required incentive payments;

b)the particular employee being employed by ACA NSW MEMBER before 3/07/2017, or such other time at the absolute Discretion of management;

c)the particular employee being employed by ACA NSW MEMBER and not serving a period of notice of termination of employment at the Notification Date (regardless of whether notice of termination was given by ACA NSW MEMBER or the employee);

d)the particular employee achieving at least a satisfactory performance rating (ie a 3 rating) at their performance review, based upon their performance for the year against their KPIs. Employees will be ranked as either:

1. 
   (unsatisfactory - don't qualify for a bonus);
   
2. 
   (below average - don’t qualify for a bonus);
   
3. 
   (satisfactory performance);
   
4. 
   (excellent); or
   
5. 
   (outstanding).
   

1.17A performance review meeting may be held with an employee to discuss their performance. Employees will be notified of their performance ranking. The ranking is based upon the employee’s performance for the year against their KPIs.

1.18ACA NSW MEMBER retains the absolute Discretion at all times, to amend, cancel or discontinue the incentive and/or bonus schemes (and associated incentive KPI plan), in part or in its entirety, without compensation, at any time. Employees should be informed if any such decision is taken. If the incentive and/or bonus scheme is amended, cancelled or withdrawn completely during the term of the scheme, ACA NSW MEMBER may exercise its Discretion to make a pro-rata incentive payment to affected employees.

1.19If an employee is transferred to another role during the scheme period, the employee’s incentive entitlements and KPIs may be adjusted.

1.20If an employee’s employment with ACA NSW MEMBER is terminated prior to the Notification Date for a reason, other than serious misconduct, poor performance, other conduct issues or resignation, ACA NSW MEMBER may exercise its Discretion to make a pro-rata incentive payment to the affected employee.

Confidentiality

1.21It is a condition of each employee’s participation in ACA NSW MEMBER’s incentive and bonus scheme, that all details of the scheme, policy and incentive KPI plan are kept confidential. Any breach of this confidentiality requirement may result in the relevant employees’ incentive and/or bonus being withdrawn, or other disciplinary action being taken, which may include termination of the relevant employee’s employment.

Variations

ACA NSW MEMBER reserves the right to vary, replace or terminate this policy from time to time.

Policy version and revision information

Policy Authorised by: PolicyAuthorisedByName Title: PolicyAuthorisedBy	Original issue: PolicyOriginalIssueDate
Policy Maintained by: PolicyMaintainedByName Title: PolicyMaintainedBy	Current version: 1
Review date: 2/07/2018

Employee acknowledgement

I acknowledge:

receiving the ACA NSW MEMBER Policy;

that I will comply with the Policy; and

that there may be disciplinary consequences if I fail to comply, which may result in the termination of my employment.

Your name:
Signed:
Date: