Key German Employment Law Update 2025: Timely Target Setting for Performance-Based Bonuses
Employers in Germany should take note of a significant recent development in employment law. On 19 February 2025, the Federal Labour Court (Bundesarbeitsgericht, BAG) issued a landmark decision (Ref. 10 AZR 57/24) confirming that failing to set performance-based variable remuneration targets on time can create substantial liability — potentially requiring payment of the full bonus […]