In What Cases The Salary Of An Employee Can Be Reduced? - Your strategic HR partner - Smartree

In What Cases The Salary Of An Employee Can Be Reduced?

Reduction of the base salaryThe salary of an employee, established in the individual labor contract, may be increased or decreased by the employee’s consent. In this case, it is mandatory signing an addendum to the labor contract, in accordance with Article 41, paragraph 3, subparagraph e of the Labor Code updated.

 

Legal note

Art. 41 (1) The individual labor contract may be amended only by the agreement of the parties. …. (3)) Changing the labor contract refers to any of the following elements: …. e) salary.

The previous rule has exceptions, all enacted by the Labor Code:

Reducing the working hours and the salary

If the temporary reduction of activity, for economic, technological, structural or similar reasons, for periods exceeding 30 days, the employer has the possibility to reduce the working hours.

Along with reducing the program from 5 to 4 days per week, the salary of the employee will be also reduced until the remedial of the situation that caused the reduction program after consultation with trade union or employee representatives, as appropriate.

Reducing the salary as a disciplinary measure

The Labor Code provides at Article 248, paragraph 1, that the employer may apply disciplinary sanctions if the employee commits a disciplinary error.

For a period of 1 to 3 months the basic salary may be reduced by 5-10%, and the same percentage is established also for management indemnity, as appropriate.

The registration of salary decrease in ReviSal

Any change to any of the items referred to in Article 17, paragraph 3 of the Labor Code (such as the identity of the parties, the job description, the work place, the length of annual leave, the salary basis, other elements of the salary etc.) requires the completion of a addendum to the contract within 20 days from the occurrence of the change, except when such a modification is expressly provided by law.

So, after signing the addendum by the employee who agrees with the reduction of salary, whether or not accompanied by reduced working hours, this change is recorded in ReviSal.

The registration in ReviSal of the base salary reduction as a result of disciplinary action is not expressly provided by GD 500/2011. But, because with the salary reduction, other items such as benefits, compensations etc. are reduced, the change may be operated in the register of the employees.

The reduction of the base salary as a result of disciplinary sanction may be registered in ReviSal based of the disciplinary sanction decision.

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