With effect from 31 October 2023 the “bonus cap”, which previously limited the variable remuneration of certain bank staff to 100% of their fixed pay (or 200% with shareholder approval) has been abolished. The FCA and PRA in their consultation paper on this change highlighted that the removal of the cap is intended to help
In the financial sector, in addition to individual employment contracts, working conditions can be subject to various industry related statutes and regulations, collective bargaining agreements and works agreements.
Laws and regulations
As a reaction to the global financial crisis, the participants of the 2008 G20 summit in Washington, including Germany, agreed on the establishment and
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
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