Apart from certain provisions which may be tailored to the relevant situations negotiated by companies or sectors of business through collective agreements (subject to compliance with a number of basic rules and principles), French employment law does not include any specificities in relation to certain sectors of business.
In particular, financial institutions are subject to
General background
The principle of remuneration based on the employee’s performance has long been permitted by French employment law provided in particular that such remuneration is based on objective criteria, does not result in payment of remuneration inferior to the minimum wage and complies with the general principle of equal work for equal pay.
In
The legal background
One of the main concerns of a business is to ensure its employees’ commitment and to encourage employees’ initiatives in order to fuel innovations and business growth. This is one of the reasons which motivates companies to pay their employees variable remuneration based on their performance.
Such remuneration is generally permitted under
It is common practice for companies to pay their employees a variable remuneration based on their performance. Such remuneration has become an increasingly popular component of employee compensation as it constitutes a very effective way of ensuring employee commitment.
French case law permits such remuneration but lays down strict conditions to be complied with. Consequently