Daily Archives: 22. December 2025

Bonus reduction for parental leave: BAG confirms pro rata reduction

Bonus reduction for parental leave: BAG confirms pro rata reduction

The Federal Labor Court (BAG) has confirmed in a recent decision that employers may reduce bonus payments proportionately if an employee has taken parental leave during the bonus period. The decision clarifies how performance-related variable remuneration is to be treated in the context of the statutory suspension of the employment relationship and raises important questions for company practice. The BAG ruling: No entitlement to full

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