Federal Labor Court: An employer must pay damages if it notifies employees of bonus targets too late

If an employer fails to notify the employee of the bonus target requirements in a timely manner during the relevant year, the employer may, in case of doubt, be liable to pay the employee damages up to the full amount of the bonus. Furthermore, the employer bears the sole burden of initiative to disclose the targets, according to the Federal Labor Court (BAG) in its decision of April 22, 2026 (Case No. 10 AZR 28/25)…