The Supreme Court restricts pay incentives that penalise sick leave
The Spanish Supreme Court has reiterated that incentive schemes or productivity bonuses established by companies cannot penalise justified absences, such as sick leave due to temporary incapacity.
In many cases, some companies link certain salary incentives to attendance or actual presence in the workplace. However, case law has established that these schemes cannot result in a reduction in pay when the absence is legally protected, as is the case in situations of illness or accident.
From a legal perspective, Article 45.1.c) of the Workers’ Statute provides for the suspension of the contract due to temporary incapacity, whilst Article 17 prohibits any form of discrimination in employment relations. Furthermore, the General Social Security Act regulates the financial protection of workers during periods of sick leave.
According to the Supreme Court’s ruling, incentive schemes must be designed in an objective and proportionate manner, ensuring that employees are not penalised for exercising rights recognised under labour law.
This interpretation requires companies to review their remuneration policies and strengthens the protection of employees against potential pay cuts resulting from sick leave or other justified absences.
