Where an employment contract provides for a bonus but the amount or criteria are not fixed, the employer is bound to pay a reasonable sum on a quantum meruit basis, assessed by reference to the value the parties placed on the employee's services and the course of dealing between them. Such bonuses constitute 'wages' under s 9 of the Corporations Act 2001 and attract priority creditor status under s 556(1)(e). An insolvent employer cannot rely on its own breach of contract in terminating employment to defeat a condition precedent requiring employment at year end.
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