Lourdes Escassi analyses the limits on bonuses linked to absenteeism | Cinco Días

Lourdes Escassi, counsel in the labour area at Gómez-Acebo & Pombo, analyses in Cinco Días the impact of the recent case law of the Supreme Court of Spain on variable remuneration schemes and their relationship with workplace absenteeism.

In particular, she explains that the Supreme Court’s doctrine limits the ability of companies to reduce or prorate bonuses when an employee has been on temporary sick leave, as there is no legal basis to deduct those days and because the practice may risk being considered discriminatory on the grounds of illness.

According to Escassi, this line of case law is forcing many companies to review and redesign their variable remuneration policies, removing clauses that penalise medical leave and shifting incentives towards collective targets, overall performance or talent retention, rather than linking them to an employee’s effective presence at work.

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