A “classic” issue in cross-border consulting is whether an employee is still entitled to a bonus if their performance was clearly below average and/or the company ended the year with losses. In its judgment of February 19, 2025 (10 AZR 57/24), the Federal Labor Court (BAG) confirmed its current case law on this issue: If the employer does not set targets for the employee in good time, this generally gives rise to a claim for damages on the part of the employee if a subsequent target can no longer fulfill its motivational and incentive function. If the employer does not communicate the targets to the employee at the beginning of the year or negotiate them with the employee, the employee can invoke this case law.