Tag Archive: bonus payment

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. …

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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 …

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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 …

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Ins and Outs of Bonus and Commission Payments – Part I

Employers may grant their employees bonuses in addition to fixed basic salary for a variety of reasons, for example, to reward performance, loyalty to the company or just as a Christmas gratuity. In this context different questions arise. This two-part post addresses the most common questions regarding bonus and commission payments.    What are the …

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There is no way around it

As the nationwide statutory minimum wage of EUR 8.50 has been in force for a good two months now, the first court cases dealing with minimum wage issues start rolling in. According to a recent decision by the Berlin labour court (Arbeitsgericht Berlin, ArbG), additional vacation pay and annual additional payments will not count towards …

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Christmas (bonus) is for everyone

The Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on November 13, 2013 (docket number – 10 AZR 848/12) that employers cannot validly exclude grants of special payments such as Christmas bonuses in their regulations with respect to employees whose employment ended during the calendar year, if such bonus shall not only reward company loyalty but also …

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