Will I receive my bonus if I voluntarily join the collective layoff?

Voluntary joining a collective dismissal raises questions about the employee’s economic rights, especially in relation to the collection of previously agreed bonuses or incentives. A recent decision of the Superior Court of Justice (TSJ) of Madrid addresses this issue by defining when the employee is considered entitled to collect his or her proportional part of a bonus, even if he or she has voluntarily joined a collective dismissal.

The conflict: a disputed bonus after collective dismissal

The employee in question was entitled to an annual bonus along with his fixed salary. This bonus was divided into 60% based on individual performance, evaluated in November, and two fractions of 20% based on group and area objectives, evaluated in December. Payment was made in February of the following year, and provided for the possibility of proportional accrual, unless the contract was terminated voluntarily by the employee.

The employee’s contract was terminated on July 31, 2021 after he voluntarily joined a collective dismissal process initiated by the company. The company refused to pay the bonus, arguing that the employee had voluntarily left the company before the end of the accrual period. The dispute centered on determining whether the voluntary secondment to a collective dismissal is equivalent to a voluntary termination of the contract for the purpose of collecting a bonus.

Ruling: no voluntary nature of collective dismissal

The Madrid Supreme Court ruled in favor of the employee and ordered the company to pay the amount of the bonus plus legal interest of 10%. The judgment argues that the voluntary assignment to a collective dismissal does not imply a voluntary termination of the contract. The main arguments are:

1. Consolidated Supreme Court jurisprudence: The judgment is based on the case law of the Supreme Court (SC), which establishes that the termination of an employment contract based on a collective agreement to which the worker adheres is not considered a voluntary dismissal. It is the company that decides to terminate a series of contracts through a collective dismissal, while the worker is a passive subject of that decision, together with the other affected workers. In this case, the worker’s voluntary joining does not constitute a voluntary dismissal, since the inclusion in the collective dismissal had to be admitted by the company, which also had to specify the date of termination of each contract.

In addition, if the termination of the contract is considered voluntary, the employee would not be entitled to unemployment benefits. This would imply that the employee would have obtained such benefit in an improper manner and in collusion with the company, which could be classified as a very serious misconduct.

1. Difference with the voluntary resignation: The judgment also highlights that, in this case, the case law that excludes the payment of the bonus in situations of voluntary resignation prior to the end of the accrual period does not apply. On the contrary, it applies the doctrine that protects the receipt of the bonus when the termination of the employee cannot be attributed to his or her will.

Conclusion: the employee is entitled to the bonus

The SCJ of Madrid concludes that the voluntary assignment of an employee to a collective dismissal is not equivalent to a voluntary termination of his employment contract. Therefore, the employee is entitled to the payment of the proportional part of the agreed annual bonus. This decision reinforces the principle that the company’s decision to carry out a collective dismissal makes the employee a passive subject of that measure, and not a voluntary actor of his termination.

For human resources departments and employers, this ruling implies that, when processing a collective dismissal, they must consider that workers maintain certain economic rights, such as the accrual of bonuses, even when they have voluntarily joined the process. Workers, for their part, must be aware of their rights in these procedures, especially when it comes to contractually established incentives and economic compensation.

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