If an employer uses a suggestions scheme to make awards which do
not satisfy the conditions set out in
EIM06610 (for example, because the
suggestion was made at a meeting held for the purpose of proposing
suggestions) the award does not qualify for exemption and must be
taxed in full.
However, the making of such awards does not disqualify the
employer’s entire scheme. Other awards that do meet all the
conditions will continue to be exempt, up to the permitted
maximum.
