November 2016

LABOUR LAW


1. MODIFICATION OF WORKING CONDITIONS IN A TRANSFER OF UNDERTAKINGS

The modification of working conditions in the context of a transfer of undertakings must be aimed at the continuation of employment and guaranteeing the viability of the business in the context of a severe economic crisis. The modification of working conditions cannot be justified on the basis of the transfer of undertakings itself.

2. STANDING OF TRADE UNION BRANCH TO NEGOTIATE A COMPANY’S COLLECTIVE BARGAINING AGREEMENT

The standing of a local trade union branch to negotiate a company’s collective bargaining agreement requires that the local branch have the majority of the members of the works council of the workplaces concerned. The individual branches need not be represented in each of those workplaces.

3. AN INTERRUPTION OF MORE THAN THREE MONTHS BETWEEN TEMPORARY CONTRACTS LIMITS THE ACCRUAL OF LENGTH OF SERVICES

The Supreme Court upheld the validity of an interruption of more than three months between temporary contracts as a valid parameter for reinitiating the accrual of length of services.

4. THE OBJECTIVES TO BE ACHIEVED UNDER VARIABLE REMUNERATION SYSTEMS MUST BE CLEARLY SPECIFIED

The National Court declared void an employer’s decision to not pay variable remuneration to employees despite the employees having failed to achieve the objectives, holding that the objectives were not clearly specified.

5. MISTAKE IN PERSONAL INCOME TAX WITHHOLDING ENTITLES EMPLOYEE TO CLAIM AGAINST EMPLOYER FOR THE SANCTION AND DEFAULT INTEREST

Companies are liable for the default interest and sanctions resulting from the breach of their obligations to make withholdings.

6. DISCIPLINARY DISMISSAL OF SUPERVISOR WHO TOLERATES AN EMPLOYEE’S HARASSMENT OF COLLEAGUES

The passive attitude of a supervisor following various complaints from subordinates reporting harassment justifies the supervisor’s dismissal as fair on the basis of the breach of contractual good faith.

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The information contained in this Newsletter is of a general nature and does not constitute legal advice