The Supreme Court prohibits reducing incentives during sick leave: temporary disability cannot penalize the bonus.

The Supreme Court has reiterated its position on an increasingly relevant issue in the labor field: Variable remuneration cannot be reduced due to the fact of having been in a situation of temporary disability (TD), unless there is a clear legal or conventional basis that justifies it.

In his judgment of July 16, 2025, the Supreme Court ruled in favor of a worker who claimed full payment of her annual incentives, despite having been on sick leave for 50 days during the accrual period. The company had applied a reduction proportional to the time actually worked, but the Supreme Court considers this practice to be unfair. contrary to law, as it is a unilateral decision without legal support.

The employee was entitled to an incentive based on the store's sales during the fiscal year. Supreme Court of Andalusia, in a previous instance, had endorsed the company's position and reduced the amount of the bonus. However, the Supreme Court overturned this ruling and declares the Social Court's decision final, which recognized the employee's right to receive 5,768 euros plus interest.

In its reasoning, the Court recalls that it has already ruled on this matter on other occasions. In particular, it cites the judgments STS 384/2016, of May 5, and STS 797/2016, of October 4, which establish doctrine on the Inadmissibility of deducting sick leave days to calculate variable remuneration when there is no objective and reasonable justification.

"Neither can the employer unilaterally establish conditions outside those provided for in the collective bargaining agreement, nor can the mere company declaration that suspension due to temporary disability entails a reduction in the incentive be considered, in and of itself, the cause that justifies such a consequence," the Supreme Court states.

What does this mean for businesses?

This sentence obliges review incentive and bonus plans linked to objectives or productivity, especially when they do not expressly contemplate how temporary disability situations are managed.

Besides, strengthens protection against discrimination on health grounds, in line with the current labor regulatory framework. Exclusion or economic penalty due to illness could be considered void if it is not duly justified and supported by collective bargaining.

From a preventive point of view, Companies should avoid including generic clauses that reduce rights during sick leave., and in case of doubt, opt for a guaranteed interpretation.