Labor Law Consultation

23.08.2023

REDUCTION OF SALARY WITHOUT CONSENT OF THE EMPLOYEE

According to Art. 66, para. 1, item 1 of the Labor Code, the employment contract contains information about the parties and determines the basic and additional wages of a permanent nature, as well as the periodicity of their payment. On the basis of the cited provision, upon the creation of the employment relationship, the employer is obliged to determine both the basic remuneration and the additional remuneration of a permanent nature.

The provision of Art. 119 of the Labor Code provides that an amendment to the employment relationship is permitted by written agreement between the parties. This means that with an additional written agreement on the basis of Art. 119 of the Labor Code, the parties may amend any of the elements of the content of an existing employment contract between them (working hours, position, term, remuneration, etc.) for a fixed or indefinite time, which should be recorded in the agreement. The clauses that are amended are explicitly stated in the additional agreement to the employment contract.

In the event that the worker or employee does not agree with the employer's proposed change in the terms of the employment contract and does not sign the additional agreement, it does not give rise to legal consequences. The clauses of the employment contract signed by both parties or an additional agreement to it remain in effect.

According to Art. 272, para. 1 of the Labor Code, without the worker's or employee's consent, deductions may not be made from his remuneration, except for: 1. advances received; 2. amounts overdrawn as a result of technical errors; 3. taxes, which according to special laws can be withheld from the labor remuneration; 4. insurance contributions, which are at the expense of the worker or employee, insured for all insurance cases; 5. liens imposed according to the relevant order; 6. deductions in the case under Art. 210, para. 4 when implementing limited property liability.