Bonus and other variable compensation under German law: What international employers need to know

10 Pitfalls in German employment law #15

International employers often encounter complexities when dealing with variable compensation in Germany, including target bonuses and discretionary payments. These compensation schemes are key instruments to drive employee performance and retention, but they can pose significant legal challenges. The German courts scrutinize bonus clauses closely, and drafting inaccuracies may lead to unintended entitlements or compliance issues.

This webinar will provide a comprehensive overview of best practices in designing bonus and incentive plans, identifying common pitfalls in contracts and policies, and strategies for maintaining flexibility while ensuring compliance.

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