Recent economic difficulties have created significant conflicts between employers and employees. One of the most common issues is the reduction of workers’ wages. Because economic hardship disproportionately affects employees, it is important for them to understand their rights in these situations.
Employees Cannot Be Pressured Due to Economic Hardship
The pandemic, currency fluctuations, and other factors have caused economic strain across many sectors. As businesses’ profit margins shrink and some operations are disrupted by the pandemic, employers sometimes put pressure on staff. Many companies have placed employees on unpaid leave or reduced working hours to benefit from short-time work allowances. Some employers have also tried to cut wages, and recently wage reductions have become a topic of public debate.
Salary reductions, unilateral decreases in existing pay, shifting a heavier workload onto a single employee, changing employee transportation arrangements, or classifying paid annual leave as unpaid leave are practices that have recently undermined workers’ rights. However, labor law does not grant employers the right to make arbitrary changes of this kind. In particular, changes to an employee’s social and personal rights cannot be made without informing the employee.
Changes Cannot Be Made Without Employee Notice and Consent
Under current labor law, employers must inform employees and obtain their consent before making decisions that affect them. Employers who ignore these requirements expose themselves to claims by their employees for the protection of their rights.
First and foremost, employees’ salaries cannot be reduced without notice and approval. An employee’s wage or bonuses cannot be cut without their consent. Regardless of the reasons or difficulties cited, an unauthorized reduction in pay can constitute just cause for the employee to terminate the employment contract. In such cases the employee may be entitled to severance pay and notice pay.
Similarly, the now widespread practice of unpaid leave, which increased during the pandemic, cannot be imposed without the employee’s consent. Employers cannot send employees on unpaid leave against their will. Unpaid leave is a measure that falls within worker rights but requires the employee’s agreement. If an employee refuses unpaid leave, they should be allowed to continue working. If an employer dismisses an employee for not taking unpaid leave, the employer must still pay notice and severance compensation. An employer also cannot require an employee who declines unpaid leave to relocate to a different branch or be reassigned to another line of work without the employee’s consent. With the employee’s agreement, relocation is possible, but without consent employers do not have the right to transfer staff to another city or region.
Social Benefits Cannot Be Removed
Another common problem during this period is the downgrading of employee status to reduce social security contributions or wages. Because occupational codes are now recorded fully and accurately in the system, some employers attempt to change an employee’s status to a lower category. If such a change falls outside the job description in the employment contract, the employee may lawfully terminate the employment and claim severance and notice compensation. Likewise, duties and job descriptions specified in the contract cannot be unilaterally altered; an employee is only obliged to perform the tasks stated in their contract.
Finally, economic hardship does not justify cutting social benefits such as meal or transportation allowances. These benefits should continue, and for remote workers similar supports should be provided, typically by adding compensation to their salaries.