In the enterprises, it is common for the variable part of remuneration to be linked to the achievement of objectives. Emmanuel Labrousse, a manager of Walter France’s Social working group, reminds that these must be set at the start of the financial year. Otherwise, whether the objectives are achieved or not, the employer must pay the variable part to his employee.
As a reminder, an employer can only set and modify objectives defined unilaterally within the framework of its management power under two conditions : Firstly, the objectives set must be realistic and achievable, failing which the employee cannot be blamed for not having achieved them ; on the other hand, the objectives must be brought to the attention of the employee at the start of the financial year, unless special circumstances make it impossible to set them on this date, what the judge must control. It does not matter whether their modification has a favorable or unfavorable impact on the amount of variable remuneration. In a case judged on January 31, 2024*, the Court of Cassation recalls that the employer can modify the objectives that it has set unilaterally, but on condition of informing the employee at the start of the financial year. Failing that, the variable part is entirely due to him.
Setting goals during exercise is not enough
In this case, an employee demanded payment of his entire variable portion, on the principle that no objective had been set for him when he arrived in the company. The employer had specified that his employee had nevertheless been informed of the objectives to be achieved during the financial year, which led the court of appeal to dismiss the employee’s request. In this matter, the employer had only warned the employee in November that his objectives would be reviewed in January, And this, for a financial year from October N to September N+1.
The employer must pay the entire variable portion
On his side, the Court of Cassation considers that when the objectives are defined unilaterally by the employer within the framework of its management power, they must be achievable and brought to the attention of the employee at the start of the financial year. Failing that, the maximum amount provided for the variable portion must be paid in full to the employee as if he had achieved them. She therefore overturned and annulled the judgment of the court of appeal. According to her, the employer must pay the variable part of his remuneration to his employee. For Emmanuel Labrousse : “Be careful then, even in good faith, the company may be ordered to pay its variable portion to its employee, if she neglected to set her objectives at the very beginning of the exercise. »
* Court of Cassation January 31, 2024 No. 22-22709F-D
