A remuneration policy in a company is a guarantee of fairness when it comes to managing employee compensation. Find out who is obliged to prepare it and what it should contain in order to be properly prepared.
Table of Contents
- What Is a Remuneration Policy in a Company?
- Key Information About Remuneration Policy in a Company
- Is Remuneration Policy Mandatory?
- What Should the Remuneration Policy in a Company Include?
- How to Prepare a Remuneration Policy in a Company?
- Common Mistakes When Creating a Remuneration Policy in a Company
- When Does the Remuneration Policy in a Company Take Effect?
- Remuneration Policy in a Company – Summary
- FAQ – Remuneration Policy in a Company
What Is a Remuneration Policy in a Company?
The remuneration policy in a company is an internal document that outlines rules for employee salaries. The employer creates it based on the provisions of the Labour Code. Its primary goal is to ensure transparency and fairness in compensation practices.
Key Information About Remuneration Policy in a Company
| Element | Description |
| Legal basis | Art. 77² of the Labour Code |
| Mandatory Implementation | Employers with 50 or more employees |
| Form | Written document accessible to every employee |
| Scope | Specification of salaries, bonuses, and allowances |
Is Remuneration Policy Mandatory?
According to Art. 77² of the Labour Code, the obligation to introduce such rules depends on the number of employees:
- Employers with 50 or more employees without a collective labour agreement – mandatory.
- Employers with 20–49 employees not covered by a collective labour agreement – mandatory if no trade union operates within the company.
- Employers with less than 20 employees – not mandatory but can be introduced voluntarily.
For companies with less than 50 employees, such a policy can help organize remuneration issues. Moreover, it will help to avoid potential payment disputes with employees.
What Should the Remuneration Policy in a Company Include?
Such a document should address several key aspects related to salaries at the workplace. The following elements are essential:
- The value of base remuneration, including rates for specific job positions.
- Bonus systems, specifying the rules for granting bonuses (e.g., based on performance or length of employment).
- Benefits and allowances, such as overtime or night-shift pay.
- Payment rules, including payment dates and methods (e.g., bank transfers).
- Rights and responsibilities of both parties, covering employer and employee obligations regarding pay.
When preparing the document, ensure it is understandable for all employees. The language should be straightforward, and the content free from overly complex phrasing.
How to Prepare a Remuneration Policy in a Company?
Preparing remuneration policy requires collaboration with legal experts. You should consider the specific aspects of your company. The following steps are recommended:
- Analyze the company’s needs (consider the employment structure and salary budget).
- Consult with employees, especially in companies with active trade unions.
- Draft the regulations, ensuring compliance with all legal requirements.
- Implement the policy, present the document to employees and make it accessible.
Common Mistakes When Creating a Remuneration Policy in a Company
Employers often make errors when drafting remuneration policies. This may lead to legal consequences. Common mistakes include:
- Unclear provisions, leading to varying interpretations.
- Non-compliance with legal requirements, particularly regarding minimum salary.
- Failure to consult employees, resulting in a lack of approval for the document.
When Does the Remuneration Policy in a Company Take Effect?
The remuneration policy takes effect two weeks after being communicated to employees.
Remuneration Policy in a Company – Summary
Introducing a remuneration policy is not just a legal obligation. It is also a tool to improve relationships within a company. A well-prepared set of regulations helps prevent conflicts. Moreover, it ensures transparency and fairness in remuneration.
If you want to create a remuneration policy tailored to your company’s needs, contact our experts!
FAQ – Remuneration Policy in a Company
What is a remuneration policy in a company?
A document outlining the rules for employee pay within a company.
Is remuneration policy in a company mandatory?
Yes, for companies with 50 or more employees.
Who prepares remuneration policy in a company?
The employer, in consultation with employees.
Can the remuneration policy in a company be amended?
Yes, but changes require proper consultation.
What elements should remuneration policy in a company include?
Salary levels, bonus systems, allowances, and payment rules.
Does remuneration policy in a company need a trade union’s approval?
Yes, if a trade union operates within the company.
Do employees need to sign the remuneration policy in a company?
No, but they must have access to them and be aware of the content.
Does the remuneration policy in a company apply to all employees?
Yes, they cover all employees with employment contracts.
What happens if a company lacks a remuneration policy?
The employer may face legal consequences.
Does the remuneration policy cover bonuses?
Yes, it should specify the rules for granting and paying bonuses.