Salary Reduction Agreement Due To Covid 19

I refer to our [insertion date] meeting on whether you agree to accept a reduction of [amount] per [anjahr/month/hour] to a new [insert] rate per [annum/month/hour]. A wage deduction is a specified amount deducted from an employee`s monthly salary. Some deductions are mandatory, such as social security and federal income tax, while others are voluntary, such as pension and health insurance premiums. Given the options available, Heathrow`s approach is not surprising. The airport made it clear that in the absence of explicit consent (option 1), it would have little choice but to terminate employment and offer reinstatement (option 3). From an employment law perspective, this is not unusual. To help personaL managers, this article provides a snapshot of effective management strategies for reducing the size of companies and reducing wages under COVID-19, taking into account relevant labour laws and the latest regulations, work allowances and compensation issues, as well as legal risks. Under Belgian law, a (temporary) reduction in the worker`s salary is possible with the worker`s agreement. This consent can be given individually by a worker through an annex to the employment contract or collectively through a collective agreement. However, the hierarchy of sources must be respected at all times. The reduced wage must not be less than the minimum wage provided by a branch collective agreement or in the absence of an inter-professional agreement, the national minimum wage. The worker is still entitled to the corresponding minimum wage, even if he accepts with a lower salary.

However, the tasks associated with these adjustments, such as division and salary reduction, are not routine for HR teams. Inexperienced staff managers can mismanage pay cuts or layoffs and expose the company to legal risks. During all alert levels, companies are legally required to pay workers for each job they perform and must continue to fulfill all contractual obligations. This means that workers – whether they work from home or work – must receive at least the minimum wage or more if the rate in their employment contract is higher. If our company reduces the wages of foreign workers, should we make the same reduction for employees in the country of origin? Yes, a reduction in salary is legal, provided the worker accepts the reduction and the adjusted salary is above the minimum wage.