Tag Archive: bonus

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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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 …

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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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Anniversary bonus – No continuing employment relationship required

The Federal Labour Court (Bundesarbeitsgericht, BAG) decided that the payment of an anniversary bonus does not require the duration of the employment relationship beyond the date of the anniversary  (judgment dated April 9, 2014, docket number 10 AZR 635/13). The plaintiff was employed by the company for exactly forty years. His employment terminated on 28 …

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