Bonus after departure: no OTE plan is no reason not to pay
On 20 October 2026, the Amsterdam sub-district court ruled on the bonus of an employee who had left the company (ECLI:NL:RBAMS:2026:10489).
The facts
The employee had worked for Huawei since 2014 and received an annual bonus based on targets in a yearly OTE (on-target earnings) plan. He left on 1 May 2025, when no OTE plan had yet been agreed for 2025. Huawei therefore refused to pay the 2025 bonus.
The ruling
The court awarded the claim of EUR 26,680 gross, plus a statutory increase of 25 percent. Under the bonus rules, an agreed OTE plan was not a condition for the bonus, not even on departure. According to the court, such a condition would not be enforceable anyway, as it would leave it entirely up to the employer whether a bonus is paid. Moreover, the delay was entirely attributable to the employer: the employee had asked several times for the process to be started. The employer acknowledged that, had the employee not left, an OTE plan would have been agreed and he would probably have been entitled to the bonus.
Lessons for employers
Set targets on time; delays are at the employer’s risk.
Make clear in the bonus scheme what happens if an employee leaves during the year.
A condition that is entirely within the employer’s control will not hold.
Contest an employee’s calculation with reasons, or the court will accept it.
This blog provides general information and is not legal advice. For advice on a specific situation, please contact us.
