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Conditions of payment of a bonus: the employment contract binds the parties

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Client Alert

Conditions of payment of a bonus: the employment contract binds the parties

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1 Min Read

Related Locations

Paris

Related Regions

Europe

October 29, 2020

Court of Cassation, Labor Division, September 23, 2020, no. 18-24.798

In that matter, the employment contract of an employee provided for the payment of a bonus that was discretionary as to its principle and amount.

The employer decides not to pay the bonus whereas the employee received a bonus the last two years.

The employee then terminates the employment contract by claiming a unilateral commitment by the employer requiring it to pay the bonus every year.

For the Court of Cassation, the employer was entitled not to pay the bonus as long as the discretionary nature of the bonus was clearly mentioned in the employment contract.

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