On 17 December 2020, the Federal Labour Court (Bundesarbeitsgericht, BAG, docket number 8 AZR 149/20) decided that under certain circumstances an employee is entitled to a bonus payment even though no target agreement has been made for the bonus period. If the employer by fault breaches its contractual obligation to set targets together with the …
Bonus entitlement despite non-concluded target agreement Read More »
Employers may be required to provide safety authorities with information on individual target agreements with their employees. In a judgment dated 28 February 2018, the Dusseldorf administrative court confirmed a corresponding order by the local safety authority (docket number 29 K 4191/16). In the case at hand, the employer offers consulting services. It is bound …
Employer obligation to provide individual target agreements to safety authority Read More »
On 23 August 2017 the Federal Labour Court decided that despite the unrestricted granting of a special payment for multiple years, the employer may reduce the amount of a special payment in the future provided that the employment agreement contains a reservation in this respect (docket number 10 AZR 97/17). The employee and later plaintiff …
Reduction of a Special Payment Possible Despite Unrestricted Granting for Years Read More »
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 …
Ins and Outs of Bonus and Commission Payments – Part I Read More »
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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