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Contractual discretion

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Where an employment contract expressly states that a bonus is “discretionary” or is within the employer’s “absolute right” to declare, does an employer have an unfettered discretion to decide whether to declare bonuses? In BGC Partners (Singapore) Ltd and another v Sumit Grover [2024] SGHC 206, the General Division of the High Court reiterated that employers owe an implied duty to exercise their contractual discretion reasonably. What is considered reasonable would depend on the specific facts of the case.