Section 75
Payment of annual salary supplement or other variable payment
(1)
Where a contract of service or collective agreement made before the commencement of this Act provides for the payment by the employer of any annual salary supplement, annual bonus or annual salary increase, such payments shall continue to be payable by the employer until the employer and his employees or a trade union representing his employees have negotiated and agreed to vary such payments.
(2)
An employer and his employees or a trade union representing his employees may negotiate for and agree to a variable payment based on the trading results, productivity or on any other criteria agreed upon by the parties concerned.
(3)
Where an employer has not paid any annual salary supplement prior to the commencement of this Act, any contract of service or collective agreement made on or after such commencement between the employer and his employees or a trade union representing his employees shall not contain a provision for the payment of an annual salary supplement exceeding the equivalent of one and one-half month’s salary of the employees.
Employment
B.L.R.O. 2/2026 57
(4)
Any —
(a)
person who, or trade union of employees which, requests
(whether orally or in writing) or invites negotiations for the payment by an employer of an annual salary supplement which is in excess of the amount specified in subsection (3); and
(b)
employer who pays an annual salary supplement exceeding the amount specified in subsection (3), is guilty of an offence.
(5)
Notwithstanding that an annual salary supplement may be payable under subsection (1) or (3), an employer may, in the event of exceptionally poor business results for any year, invite the employees or a trade union representing his employees to negotiate for a lower quantum of annual salary supplement or for no annual salary supplement to be paid for that year.