September 2025
Variable Incentives and Periods of Sick Leave: Prohibition of Unilateral Reduction
The Spanish Supreme Court judgment no. 725/2025, of 16 July, resolves the unifying cassation appeal brought by a senior sales assistant against the decision of the High Court of Justice of Andalusia (Málaga division), judgment no. 1290/2023 of 12 July. The latter had reduced the amount awarded at first instance in respect of annual sales-related incentives, deducting the days during which the employee was on temporary incapacity (sick leave) within the accrual period.
1. Factual Background
The claimant was employed by the company between 2000 and 2019 with an annual salary of €33,787.20, receiving commissions and variable incentives linked to store sales (with thresholds of €1,650, €3,300 and €6,600). In July 2019, the company communicated the incentive plan for the period 1 February 2019–31 January 2020, conditional upon meeting the sales target, with payment scheduled in the March payroll. Based on the turnover achieved, the employee was entitled to the maximum tranche. Following her dismissal in December 2019, she claimed full payment of the incentives.
The Social Court no. 5 of Málaga partially upheld the claim and ordered the company to pay €6,338.44 plus 10% default interest. On appeal, the High Court of Justice of Andalusia reduced the amount to €4,864.10, deducting 50 days of sick leave by applying a pro rata adjustment based on actual time worked.
2. Procedural History
The employee lodged a unifying cassation appeal, submitting for comparison Supreme Court judgment no. 68/2023 of 25 January (rcud 4265/2019), which had resolved a similar case at FECYT, holding that reduction of variable remuneration for periods of sick leave was unlawful. The Public Prosecutor’s Office supported allowing the appeal, considering the doctrine established in the comparative judgment to be applicable.
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