A CEO of a company received an annual bonus based on the company’s financial result on top of his monthly salary. After the termination of the employment of the CEO, a dispute arose regarding a claim for vacation pay. The questions before the court were whether the bonus agreement had set forth that the paid out bonuses did include vacation pay and thus, whether the CEO had received vacation pay for the paid out bonuses. The company claimed that the bonus agreement implied that the social security fees, tax and other salary related costs were supposed to be included in the bonus and that no other salary related cost for the company should follow the payment of the bonuses.
The Labour Court concluded that the bonus agreement did not explicitly mention the vacation pay. Despite this, the CEO should have understood that the intention of the bonus agreement was not cover all relevant salary costs for the company since he was responsible for, and authorized, the other employees’ bonuses based the same type of bonus agreement. Even though the vacation pay was not specified when the bonuses were paid out, it was deemed to be included and the CEO had therefore received the vacation pay he was entitled to.