Category Archive: Bonus Payments

Federal Labor Court rulings to watch in 2017 (edition Jan – March)

Already in the first quarter of the New Year Germany’s Federal Labor Court will deliver a number of judgments important for advisors and practitioners alike: Time Credits for works council members? (- docket no 7 AZR 224/15 – expected for 18 January 2017- ) Although members of a works council act in an honorary role …

Continue reading »

Cut-off periods may not limit employees’ claims if the employer neglects to give employees relevant information

The expiry of a limitation period does not necessarily result in the forfeiture of claims if the employer neglects to inform the employee about circumstances which would have led to him making claims within the cut-off period, the State Labour Court of Düsseldorf (Landesarbeitsgericht Düsseldorf, docket number 10 Sa 1033/15) ruled on April 29, 2016. …

Continue reading »

Court can decide amount of bonus where there has been an inequitable exercise of employer’s discretion.

The plaintiff worked in a major bank – the defendant – as Managing Director from January 2010 until the end of September 2012. It was agreed by contract that the plaintiff would participate in the bonus system and/or in a deferral plan. On the basis of this agreement, the plaintiff received an achievement bonus of …

Continue reading »

Special allowance for work during normal hours can be included in the minimum wage

On 12 January 2016, the Higher Labour Court Berlin-Brandenburg (Landesarbeitsgericht, LAG) ruled (docket number 19 Sa 1851/15) that whether or not a special allowance has to be paid in addition to the minimum wage, depends on the reason for the special allowance. If the special allowance is paid for the regular work which an employee …

Continue reading »

No Second Bosman – Total Relief at Bundesliga

The Higher Labour Court Rheinland-Pfalz (Landesarbeitsgericht, LAG) ruled on February 17, 2016 (docket number 4 Sa 202/15) that the established practice of employing professional football players on a fixed-term basis does not violate German employment laws. Whereas usually decisions of a Labour Court take only notice at a certain audience, these days such a ruling is …

Continue reading »

Equal treatment regarding special premium for waiver of an action

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on 8 December 2015 (docket number 1 AZR 595/14) that a works agreement on special premium dependent on renunciation of suing for dismissal protection may not exclude employees who are employed otherwise after their dismissal and do not initiate dismissal protection proceedings. The plaintiff is an official (“Beamter“). In case …

Continue reading »

Different principles for different payments

On 8 December 2015 the Federal Labour Court (Bundesarbeitsgericht, BAG, docket number: 1 AZR 595/14) ruled that it is permissible to limit severance payment entitlements in a social plan (Sozialplan) to employees who are facing unemployment as a result of the termination. In contrast to this, a bonus payment in exchange for a waiver to …

Continue reading »

Holiday and Christmas Bonus – No Crediting against Minimum Wage Entitlement

On 2 October 2015 the Higher Court of Berlin-Brandenburg (Landesarbeitsgericht Berlin-Brandenburg) decided that an employer must not credit the employee´s entitlement to holiday and Christmas bonus against the obligation to meet the legal requirements of the Minimum Wage Act (docket number: 9 Sa 570/15). Since the Minimum Wage Act (Mindestlohngesetz) became effective of 1 January …

Continue reading »

Think hard before making any special payments….

Employers should think hard before they pay out an annual bonus to their employees – as this may result in an actual ongoing entitlement for employees. According to a ruling of the German Federal Labour Court (Bundesarbeitsgericht, BAG), dated May 13, 2015 (docket number: 10 AZR 266/14) this generally also applies if the employer has …

Continue reading »

Ins and Outs of Bonus and Commission Payments – Part II

In the second part of our two-part overview, we will address further aspects of bonus and commission payments with regard to the possibility to revoke a bonus and the impact of a termination of employment on the bonus entitlement. Can an employer revoke a bonus? Under certain, very narrow conditions, German law allows the employer to …

Continue reading »

Older posts «