Bonus & incentives
Pay packages today are often composed of a number of elements. As a result, there is an increasing need for legal advice – both in relation to determining the different elements and addressing the many challenges and issues
We advise on the composition of individual pay packages, benefits and flexible pay packages as well as cash or share-based incentive programmes under which bonus, commission, shares, share options, phantom shares or other types of variable pay elements may be awarded.
Our advice not only covers the labour and employment law-related aspects but also all other aspects involving other legal areas that may be relevant, such as company law, stock exchange law, tax law and social security law.
We have extensive experience and expertise in handling the complex issues which are peculiar to the financial sector in relation to bonus and other incentive schemes, including in particular material risk takers.
As part of our assistance, we can help draft the necessary contract documents. Ius Laboris colleagues and other law firms in our international network can assist in clarifying and addressing any issues that may arise in connection with cross-border schemes.
We recently
- assisted a large number of companies in setting up and implementing global bonus systems
- advised private and public sector employers on the implementation of flexible pay packages, including the tax law-related framework
- advised Danish and international companies on employees’ rights in termination situations and in connection with transfers of undertaking
- assisted several listed companies in drafting remuneration policies, including guidelines on incentive pay, and implementing various share-based pay schemes, e.g. including awards of Performance Share Units
- advised a number of companies on the special issues which are peculiar to the financial sector in relation to remuneration policies as well as bonus and other types of incentive programmes
- represented a large number of employers in court cases regarding employees’ rights under bonus and other types of incentive programmes, including several precedent-setting Supreme Court cases on the scope of section 17 a of the Danish Salaried Employees Act in relation to retention bonus schemes
- assisted in setting up Management Investment Programmes
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Information about Bonus & incentives
Ny dom fra Højesteret: Fastholdelsesbonus var ikke løn
Højesteret har nu stadfæstet Vestre Landsrets dom, som fastslog, at en provisionslønnet tandplejer, der under coronapandemien blev hjemsendt under lønkompensationsordningen, havde ret til løn beregnet ud fra gennemsnittet i perioden forud for hjemsendelsen.
Adjustments to occupational schemes under the Aliens Act – bill submitted for consultation
A draft bill to simplify certain occupational schemes under the Aliens Act – including the requirement for a Danish bank account – has been sent out for consultation. The rules are expected to take effect on 1 July 2024.
Registration of working time – bill adopted
The bill, which introduces a requirement for registration of working time for each individual employee and provides the opportunity to derogate from the 48-hour rule for certain employees, has been adopted.
Ius Laboris receives prestigious award
Ius Laboris recently received the prestigious Global Network of the Year award at The Lawyer European Awards 2023.
Duty to register working hours – bill proposed
The long-awaited bill, which introduces a requirement for registration of working time for each individual employee and provides the opportunity to derogate from the 48-hour rule for certain employee groups, has been submitted to the Parliament. The effective date has been postponed to 1 July 2024.
Monitoring employees’ social media: the legislation in a global perspective
In a new article, Ius Laboris takes a closer look at the issue of whether employers can monitor employees’ social media posts.
The Government’s legislative programme for 2023/2024
On the first Tuesday of October, the parliamentary year kicked off and, as usual, the Government announced its legislative programme for the parliamentary year 2023/2024.