Client Alert
Conditions of payment of a bonus: the employment contract binds the parties
Client Alert
Conditions of payment of a bonus: the employment contract binds the parties
October 29, 2020
Court of Cassation, Labor Division, September 23, 2020, no. 18-24.798
In that matter, the employment contract of an employee provided for the payment of a bonus that was discretionary as to its principle and amount.
The employer decides not to pay the bonus whereas the employee received a bonus the last two years.
The employee then terminates the employment contract by claiming a unilateral commitment by the employer requiring it to pay the bonus every year.
For the Court of Cassation, the employer was entitled not to pay the bonus as long as the discretionary nature of the bonus was clearly mentioned in the employment contract.
To receive the most recent articles from our French L&E lawyers, please subscribe to our newsletter.