We successfully represented the insolvent credit union Taupkasė (bankruptcy administrator – Klaipėdos administratorių biuras) in a dispute with employees over the amount of downtime pay and termination compensation. The employees claimed that bonuses paid should be included when calculating the average wage. The court found in favour of our client, stating that it was lawful not to include bonuses when calculating the average wage of employees.

Bonuses paid by Taupkasė not classified as bonuses for work performed

Considering that bonuses were paid to employees for quality performance, we sought to prove that they should be classified as bonuses paid on the initiative of the employer (in other words they were an incentive), so they should not be included when calculating the average wage.

Although Taupkasė had a set of bonus procedures, the court found that bonuses paid could not be considered as bonuses for work performed, which would allow them to be included when calculating the average wage. According to the judgment, in order for a bonus to be assigned to the category of bonuses for work performed, the bonus procedure must specify the bonus criteria – the amount of the bonus, the criteria for determining the amount of the bonus and the circumstances for payment of the bonus.

Our team representing the client

The client was represented by partner Kęstutis Švirinas, senior associate Kazimieras Karpickis and associate Greta Kubiliūnaitė.