Workplace Absenteeism: How to Implement an Effective Incentive System

The Supreme Court has recently issued a key ruling for business management: companies can establish salary bonuses linked to workplace absenteeism, as long as these incentives do not create gender biases and only unjustified absences are considered. This decision provides significant support to companies in their efforts to optimize productivity and reduce absenteeism.

 

 

What does the Supreme Court ruling say?

In its ruling of January 20, 2025, the Supreme Court establishes that companies can implement salary supplements based on attendance, as long as these criteria are objective and do not violate workers’ fundamental rights and the principle of equality.

The ruling responds to an appeal by Verallia Spain S.A. against the decision of the National Court, which had declared Article 49 of its Collective Agreement null. This article regulated a salary supplement conditioned on attendance, penalizing absence with a progressive reduction of the incentive amount.

Limits to Avoid Discrimination

The Supreme Court overturns the National Court’s decision and considers that the incentive is valid in its essence, as its purpose is to improve productivity and reduce absenteeism, which falls within the legitimate labor policy of the company. However, it sets clear limits:

❌ Absences due to illness cannot be counted.

❌ Absences related to family reconciliation, such as caring for children or sick relatives, cannot be included.

❌ Absences protected by law, such as leave due to family death or medical appointments, cannot be penalized.

A Clear Framework for Companies

The ruling reinforces the idea that companies can reward attendance without violating equality and non-discrimination regulations. Thus, the Supreme Court provides a clear framework for companies to implement these incentives effectively and in compliance with the law.

 

How Can Companies Benefit?

From a business perspective, this ruling has a significant impact on collective bargaining, as it validates the inclusion of salary incentives for attendance in agreements, as long as they are designed equitably and in accordance with current laws. Companies and worker representatives can design variable compensation systems that promote attendance without engaging in discriminatory practices.

Practical Implications

This decision has important consequences for both companies and workers:

✔️​ Validates the existence of absenteeism incentives as a business management tool: It expressly recognizes that combating workplace absenteeism is a legitimate business goal.

✔️​ Protects workers from potential discrimination due to illness or family situations: By knowing which criteria can be applied and which must be excluded (such as absences justified by illness or family reconciliation), companies can avoid legal and labor conflicts.

✔️​ Establishes a reference framework for future collective agreements: It sets clear criteria for drafting clauses on incentives in collective agreements, as well as defining which absences can and cannot be penalized.

✔️​ Strengthens​ productivity: Greater continuity in workers’ functions, leading to better work organization and a reduction in costs due to staff shortages.

 

Key Points for Implementation in Companies

Companies wishing to apply these types of incentives should:

🔹​ Define objective and transparent criteria: It is essential that the incentive system is clearly detailed in agreements or internal policies to avoid arbitrary interpretations.

🔹​ Avoid gender biases and discrimination: Any measure adopted must ensure equal opportunities and not harm protected groups. Companies must expressly exclude protected absences.

🔹​ Ensure legality: All applicable labor regulations and collective agreements must be respected. Absences and their causes should be properly documented.

🔹​ Communicate the measure appropriately: Explaining the benefits and conditions of the incentive to employees will help generate acceptance and commitment.

At Adlanter, we have a specialized labor advisory team that can assist companies in designing incentive plans compliant with current regulations. If you want to apply this strategy in your organization, feel free to contact us.