Walker v Andrew

The case of *Walker v Andrew* concerned a dispute between an employee and a company regarding an employer's bonus scheme. The employee sought payment of a bonus that was not specifically quantified in the employment contract. The matter came before the Court of Appeal of New South Wales.

The central legal issues before the court were whether the employer was contractually bound to pay a bonus despite its unspecified nature, and if so, on what basis the quantum of that bonus should be determined. Additionally, the court considered whether such a bonus, if payable on a *quantum meruit* basis, would qualify as "wages" for the purposes of priority under the *Corporations Act 2001* (Cth).

The Court of Appeal held that where an employer promises an unspecified bonus, they are bound to pay a reasonable bonus, which can be assessed on the basis of *quantum meruit*. This principle acknowledges the employer's contractual obligation to reward the employee's efforts. The court further determined that a bonus payable on a *quantum meruit* basis would indeed fall within the definition of "wages" for the purposes of the priority provisions of the *Corporations Act 2001*.

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.