Can an employer avoid paying a bonus for 2019 in the face of a coronavirus crisis?

The contract of employment and internal regulations may specify the conditions, fulfilment of which will make it necessary to pay the employee a bonus. What’s more, the employer may, in a discretionary manner, grant the employee a reward that is included in his regular salary.

The bonus, which an employee receives automatically when certain internal conditions are met, is a component of the remuneration due. Therefore, the difficult financial situation of the employer due to the current economic collapse does not justify the refusal to pay the bonus to which the employee is entitled.

Moreover, an employee cannot waive bonus on their own, e.g. by signing an agreement on the matter.

By refusing to pay the bonus, the employer exposes himself to the possibility of the employee’ claiming for payment of the salary in the court. In addition, the real risk is also an inspection by the relevant authorities (PIP) and even criminal sanctions.

It is worth pointing out, that in the content of the internal regulations we may include a provision stating that one of the criteria for granting a bonus is e.g. the company’s achievement of a positive financial result (together with a clear indication of the amount which constitute a positive result within the company).

Author: Oliwia Kruczyńska, Junior Associate at Kołecka & Partners LLP

One Comment

Comments are closed.