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Supreme Court: Christmas bonuses and the prohibition of discrimination in performance-related pay

At a time when many employers are paying their employees Christmas bonuses or performance bonuses, the Labour Inspectorate of the Republic of Slovenia (IRSD) would like to draw your attention to the important case law of the Supreme Court of the Republic of Slovenia, in particular to the Decision VIII Ips 9/2024, adopted at its meeting on 20 August 2024.

The Supreme Court stresses that performance-related payments, if paid by the employer, must not be based on discriminatory practices. Among other things, it has taken the view that a reduction in pay due to sickness absence is not justified, as it is a circumstance beyond the employee's control.

Although the Labour Relations Act (ZDR-1) does not impose an obligation on employers to pay performance-related bonuses, nor does it set a minimum amount, it prohibits discrimination in the treatment of workers on the basis of personal circumstances.

A breach of the principle of equal treatment may constitute an offence under the first indent of Article 217 of the ZDR-1, which means that the employer may be fined.

The IRSD urges employers to comply with the principle of equal treatment when making performance-related payments and to ensure that their employees are not placed in an unequal position because of circumstances beyond their control.