Lawyers International Network for Employees and Executives (LINEE)

Compensation

Germany’s Approach to Short-Time Work Is a Key to Weathering Economic Emergencies

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During the last economic crisis in 2009, Germany was already respected worldwide for its crisis management and its approach to short-time work benefits (“Kurzarbeit”) specifically. The co-determination regulations on Kurzarbeit significantly helped Germany overcome the emergency like no other country, and it laid essential foundations for post-crisis economic growth. 

Short-time work was a vital factor in Germany’s ability to weather the 2009 economic crisis and gather crucial resources to bounce back. Because of this positive experience, the German government has not hesitated to turn to Kurzarbeit during the COVID-19 pandemic to relieve small and medium-sized enterprises that continue to face financial hardship. To this end, the federal government has lowered formal hurdles to the introduction of short-time work and expanded its room to maneuver.

Relocation of Executives: Benefits of a Competitive Package

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In a globalized world like ours, job-related relocations are a daily occurrence, but do we really know all the processes behind them? This article aims to help the reader to have a better overall view on the matter. Given that relocation occurs when an organization moves employees from one location to another, let’s analyse the basics of an effective relocation program. Here we will focus on the relocation of executives.

Hiring talented professionals for executive positions is one of the biggest challenges companies face today. “Failure to attract and retain top talent” was the number one issue in the Conference Board’s 2016 survey of global CEOs, even before economic growth.

The most crucial aspects to consider are policy development, communication issues, legal issues, and economic factors. Human resources professionals must offer competitive relocation packages and effective relocation practices and policies to attract talented managers. Relocation assistance can also help companies to retain current executives by giving them career development opportunities and simultaneously advance business development and operations by ensuring the right manager is in the right place at the right time. A well-designed relocation program complements an employer’s talent management program. If a relocation is not handled successfully, it threatens the employer’s ability to retain the manager, and it risks losing someone the employer has devoted time and money to develop and move. Read more.

10 Points About Employment Bonuses in Germany

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In Germany and around the world, a bonus can be a substantial component of an employee’s compensation, particularly among executives. Below is information you should know when negotiating a bonus or seeking to have your employer pay a bonus to which you are entitled.

There Are Different Forms of Bonuses

There is no single type of bonus payment in Germany. Instead, there are several bonus categories, each aligned to a distinct incentive or purpose. For example, a performance-based bonus compensates the employee for individual results, while a profit-sharing bonus – usually reserved for high-level employees – is based on the company’s achievements. Employees may also be paid gratuities, such as holiday or anniversary bonuses, and supplemental pay to compensate for extra work time.

Bonus Policies Are Generally Discretionary

Companies often give themselves the authority to determine bonus amounts, conditions for payout, and when or even if they will grant a bonus. Employees seeking bonus payments look to German labor tribunals to force companies to adhere to their own rules and policies, ensuring employers treat workers fairly. Read more.

Bonuses for Employees and Executives in Italy

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Nowadays, companies boost the productivity of their employees, especially the productivity of their managers, through various incentive plans, including the provision of performance bonuses or productivity bonuses.

These practices are becoming increasingly important, as the great changes observed in recent years in the labor market have led to a considerable transformation in the industrial relations and welfare policies of our country.

As commonly known, in Italy, the remuneration is irreducible, due, fixed, and based on the collective and individual contract. Read more.