Tag archives: remuneration

Germany: An Employer’s duties dealing with COVID-19 (Coronavirus) – Q&A

COVID-19 is spreading across the world and companies everywhere are faced with its challenges. In circumstances where a COVID-19 case impacts your German workplace we recommend close coordination with the public health authority on how to proceed. In doing so – especially against a possible liability for illness or even death – it will show that you, as an employer, have taken all reasonable steps to ensure that you have protected your employees. For further guidance please check our Q&A list:

1. Can employees be forced to take unpaid leave or flexitime or to reduce their working hours?

There is … Continue Reading

Equal job, equal pay (and equal pay increase)

The legal context

Remuneration is a fairly sensitive matter in France. Although the determination of the level of remuneration of employees is not strictly regulated (only minimum levels of remuneration are provided by the law and by the relevant collective bargaining agreement), the freedom of employers is limited by the “equal job, equal pay” principle and by the prohibition of discrimination on remuneration.

More specifically, case law now requires that variable pay based on performance should be set on the basis of objective criteria and calculation methods fixed at the beginning of the relevant performance period, and communicated clearly in … Continue Reading

How to calculate holiday pay in the UK – an update

This post was contributed by Lindsey Hooper, Associate, Norton Rose Fulbright LLP (London) 

As mentioned in our briefing posted in December 2014 (Holiday Pay: Where are we now?), there has recently been litigation in the UK in relation to the correct calculation of holiday pay and the factors which should be taken into account. The current position in the UK is that workers must receive their “normal remuneration” during periods of statutory holiday. This means that, depending on the regularity and permanency of such payments, certain allowances, commission and non-guaranteed compulsory overtime could form part of an employee’s … Continue Reading

Variable remuneration: a motivational tool to use with caution

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, variable pay is acceptable provided that such remuneration is based on objective criteria beyond the sole control of the employer, does not result in payment below the minimum wage and complies with the general principle of equal work for equal pay.

It is tempting for … Continue Reading