Tag Archive: company loyalty

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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Tricks in time recording do not save a lot of time!

Manipulation of time recording may justify dismissal without notice according to a judgment of the Higher Labour Court of Hessen (Landesarbeitsgericht, LAG).  Following judgments of the Federal Labour Court (Bundesarbeitsgericht, BAG), manipulation of time recording by employees is a serious breach of contract which can justify a dismissal without notice even where the employee in …

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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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