APPENDIX F. 
General Form for a Simple Profit-sharing Scheme : 
Cash Bonus. (Reprinted from Profit-sharing and the Labour 
Question, by T. W. Bushill,* pp. 233-237.) 
(1.) Method of Profit-sharing.—From and after the 1st of January, 
1890, the surplus (if any) of the clear profits of the business beyond 
such definite sum as is for the time being reserved to the firm for their 
own benefit (herein-after referred to as the “ reserved limit ”) shall be 
divided into two equal parts, one thereof to be distributed gratuitously 
as a bonus to the employees in the manner defined by these rules, and 
the other to be retained by the firm. 
(2.) The “ Reserved Limit.”—The present reserved limitf has been 
communicated confidentially to , chartered 
accountant, and will not be altered for the first three years, if the 
scheme so long subsists. Thereafter it may be raised or reduced by the 
firm, but (unless altered during some month of January) not so as to 
affect the distribution of profits for the financial year current at the time 
of alteration. Notice of any alteration will be given to the employees 
in such manner as to let them know how far such alteration would have 
affected the last preceding distribution had it then been in force. 
(3.) Accountant’s Certificate.—The accounts of the business will be 
audited each year by a chartered accountant, who will certify to the 
employees the bonus (if any) to which they are entitled. 
(4.) Qualifications for Profit-sharing.—The employees entitled to share 
in the profits for any financial year are such only as were employed at 
the commencement of such year, and have furnished a request to be 
entered on the list of profit-sharers. The acceptance of the terms herein 
offered is not to be in any way a condition of employment or of promo 
tion. Profit-sharers will be free to become or remain members of any 
trade or friendly society. 
(5.) Duration of Scheme.—The scheme is to continue in force only until 
the firm give notice to the employees putting an end thereto, but such 
notice, unless given during some month of January, will not take effect 
until the end of the financial year current at the time it is given. 
(6.) Method of Distribution.—-The employees’ share of profits accruing 
in each financial year is (subject as after mentioned) to be distributed 
among them in proportion to their respective salaries or wages at the 
commencement of such year, taken for one week, exclusive of premiums, 
overtime, or other variable allowances. In making any year’s distribu 
tion it shall be permissible to the firm to carry forward undivided to the 
credit of the following year’s employees’ share of profits any sum which, 
if divided, would have given to them less than one week’s wages, calcu 
lated as aforesaid. 
(7.) Payment of Bonus.—Each employee’s bonus shall, within two 
months of the end of the financial year, be paid into his account at some 
savings bank, and will then become his absolute property. 
(8.) Employees leaving.—An employee whose service ends by notice 
given on either side, by illness, or by death, will have a right to bonus 
for the financial year in which his service ends, in proportion to the 
portion of the year elapsed to the end of the month preceding the end 
of his service. Any employee leaving under circumstances other than 
before mentioned shall lose such right. Any sum lost to an employee 
under this rule does not accrue to the firm, but goes wholly to increase 
the distribution to the other employees. 
* London: Methuen & Co., 1893. 
t It !s very desirable that some intimation of the possible benefit to the employees 
should be given when the scheme is introduced. A simple style of communication 
would be: “ It the profits during the present year equal the average of the past 
three years, there would be a bonus equal to weeks’ wages for each 
participant." (T.W.B.)