The short answer is: no, this is almost never allowed.
Your salary is your most important condition of employment. Terms of employment can only be changed if you agree to them. In labor law, therefore, an agreement is an agreement. If you do not agree to lower your salary, your employer can only unilaterally change a condition of employment, i.e. without your consent, if he has a compelling interest in doing so.
Reduction of salary does have the very highest threshold here. Judges almost never find unilateral reduction of salary acceptable. Even if your employment contract states that your employer may unilaterally change your terms of employment. Practical example: the department store V&D was doing very badly. According to V&D, it was necessary to reduce salaries by 5.8% to avoid bankruptcy. The Amsterdam subdistrict court ruled that the employees of V&D did not have to accept the unilaterally imposed wage reduction. Unilateral reduction is, according to the judge, at odds with the legal system of labor law protection. In addition, V&D had recently sold all kinds of properties, and it was unclear what had been done with this money. This was also objected to by the court.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about the unilateral modification of terms and conditions of employment. Please feel free to contact us.
June 2024
