must be substantially longer than the reference period in respect of which it is granted i.e. must exceed twelve months. Since the court had previously found that a period of 15 months’ carry-over is likely to be adequate, the parameters for Member States and indeed employers are clearer: a carry-over period of nine months is too short whereas 15 months is probably long enough. What remains to be seen is whether the Government will now hold out for the period of 12 months carry-over it has proposed or, on the basis of today’s decision and the fact such period is not “substantially” longer than a year, the Government will reconsider and propose a longer period in light of the risk a mere 12 months may present.
BANKERS WIN BONUSES AFTER CEO’S MASS MEETING ANNOUNCEMENT PROVES CONTRACTUALLY BINDING
23 May 2012
Former Dresdner Kleinwort bankers have won a high profile, high value bonus claim.
People Management reports :
Background Dresdner Bank was effectively put up for sale by its owner Allianz. Employees in the investment banking division (Dresdner Kleinwort, known as “DKIB”) started leaving in 2008 because of the uncertainty. The Financial Services Authority became concerned and put DKIB on its “watch list”, demanding a plan to reduce risks, including the risks arising from staff departures. To stem staff losses, DKIB’s chief executive announced a guaranteed minimum bonus pool of €400m at a Town Hall-type meeting in August. He stressed that individual discretionary bonuses were not guaranteed but would be allocated from that pool in the usual way. This statement was subsequently repeated several times by a variety of senior managers. In December, when employees received their customary end of year bonus letters setting out their award they found a “material adverse change” clause (MAC) had been inserted, entitling Dresdner to review the bonus if its financial position deteriorated. After completion of its acquisition of Dresdner in January 2009, new owner Commerzbank activated that clause. Commerzbank did pay some bonuses but reduced them by 90 per cent in most cases. Oral guarantee Normally under a discretionary bonus scheme, an employee’s only entitlement is to be considered for a bonus. Any bonus payment is at the employer’s discretion. The DKIB claimants argued their situation was different because they had a contractual guarantee of a minimum bonus pool. The court decided that the CEO’s Town Hall announcement was contractually binding. This was primarily because, under the employees’ contracts, Dresdner was entitled to change the terms of the contracts without the agreement of employees if certain conditions were satisfied, as they were here.
Click here to read the full article
STRINGFELLOWS DANCER GOES BACK TO TRIBUNAL
23 May 2012
The case of dancer Nadine Quashie will be heading back to the employment tribunals after a judge ruled that she had been an employee at the Stringfellows club in London.
Accounting Web reports :
CIPP Policy News Journal
12/04/2013, Page 42 of 362
Made with FlippingBook - Online magazine maker