Continuation of the salary benefits paid for three consecutive years

Question

Q: If an employee gets a benefit for three consecutive years, will he be entitled to the same benefit for the following years? A: If the benefit is clearly linked to performance, either individual or company. If the financial circumstances change, it will naturally be reflected in the compensation…

Ludmila Yamalova · Accepted Answer

Hello,

Generally, it depends on the underlying terms and conditions of the "benefit".

For example, if the benefit stems from and is linked to a bonus agreement or commission agreement, then there is an argument that after 3 years of receiving it, that becomes a regular part of the compensation.

However, if the benefit is clearly linked to performance, either individual or company, and it is paid on that basis then if the financial circumstances change, it will naturally be reflected in the compensation.

Should you require further tailored substantive legal advice, kindly contact my firm by email or phone.

Regards,

Ludmila

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