NEWS

Top court to convene on scrapped bonus payments in early 2019

top-court-to-convene-on-scrapped-bonus-payments-in-early-2019

The plenary of the Council of State will convene in the first months of 2019 to decide on the size of the retroactive payments due to public sector employees who challenged the constitutionality of a 2012 law scrapping a special bonus paid out on the Christmas, Easter and summer holidays.

Last week, a section of the top administrative course ruled that those cuts violated the constitution, following a legal precedent set by the country’s Supreme Court in 2015.

The verdict came after a mass litigation brought by thousands of pensioners and pensioners’ associations.

Judicial sources said the plenary is expected to uphold the section’s ruling, but the verdict will focus on whether retroactive payments will be calculated from 2012, when the first cuts were made, or from the day the verdict was issued in 2015.

The same sources said the Council of State will likely to choose the latter. The ruling will be of great significance due to its fiscal impact.