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
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