— A permanent salary reduction occurs only when the terms of the employment contract are formally changed – either by way of a notice of change or an agreement between the parties. The employer cannot simply announce a new, lower rate, says Angelika Czarnecka, legal counsel managing the labor law practice at J.Dauman Legal. — Changing pay conditions requires justification and application of the procedure provided for in the Labor Code.
Please remember that refusal to accept the new conditions proposed in the amending notice results in termination of the existing contract upon the expiry of the notice period. In turn, the lack of consent to the amending agreement cannot in itself constitute a basis for imposing sanctions against the employee.
In all other situations where the salary is only reduced, we are generally talking about deductions from the salary or fines, not a reduction in pay.
Read also: Indian billionaire: “Young Indians should work 14 hours a day”
Salary deductions illegal
The problem of unjustified deductions from wages – including: for lateness or work clothes, comes back most often in the trade and catering industries. The expert emphasizes that such practices have no basis in labor law.
— The Labor Code clearly specifies what disciplinary penalties may be imposed on an employee and in what amounts. This catalog is closed – the employer cannot “invent” its own financial sanctions or arbitrarily reduce remuneration. Arbitrary reduction of wages is illegal and may constitute the basis for notifying the National Labor Inspectorate – explains the expert.
Read also: New law on sick leave. What will change for employees and ZUS?
Four situations when deduction from salary is legal
According to the Labor Code, the employer is entitled to make deductions without the employee's consent only in four cases:
- alimony enforced by bailiffs,
- other receivables based on enforcement titles,
- cash advances granted to the employee,
- fines for violating work order.
Each of these categories is subject to protective limits. The total value of fines may not exceed 10%. remuneration payable after making mandatory deductions. In the case of enforcement deductions, the employee must be left with an amount free from deductions, related to the minimum wage – with the exception of alimony, where the free amount does not apply.
All other deductions – for attire, negative cash register results or “deficiencies” – are illegal unless the employee has given written consent specifying a specific amount. A general blank consent signed upon employment has no legal effects. — A declaration of consent to deduction is valid only if it concerns a debt that already exists and the employee knows its exact amount and the circumstances of its occurrence at the time of signing. – emphasizes the expert.
Other fines – rules and limits
The Labor Code allows for the imposition of fines, but only for violations clearly indicated in the act: failure to comply with occupational health and safety or fire protection regulations., leaving work without excuse, reporting to work under the influence of alcohol or under the influence of drugs.
The penalty for one offense may not exceed the equivalent of one day's wages, and the total sum of penalties in a month – 10%. remuneration payable after mandatory deductions. All proceeds must be used to improve occupational health and safety conditions – the employer cannot use them “for any purpose.”
— Fines are not a tool for disciplining employees by reducing their remuneration. They are intended to be a last resort, used in situations clearly defined by regulations, and not a way to manage personnel – emphasizes Angelika Czarnecka.
When can an employer legally reduce your salary?
Reducing remuneration is an exceptional and strictly regulated situation in labor law. The Labor Code provides only a few cases in which the employer has the right to pay less, and this always requires meeting specific conditions.
Faulty work due to the employee's fault
If an employee performs work incorrectly through my own faultthe employer may: not pay for the part that is unusable due to defects; reduce remuneration for a part that can be used but has lower value.
Mere dissatisfaction of the manager is not enough – there must be a real fault and a connection to the employee's behavior.
Unexcused absence
The second situation is unjustified absence from work. During this time, the employee does not perform any duties, so he is not entitled to remuneration.
Downtime due to the employee's fault
Downtime caused by an employee – e.g. a situation in which, due to his fault, equipment is damaged or the work of a department is blocked. As a rule, downtime does not deprive you of the right to remuneration, but if it is the employee's fault, you are not entitled to remuneration for this period.
Read also: ZUS inspections are becoming more frequent and more effective. What inspectors check
Deductions in civil law contracts
The rules are different for mandate contracts and B2B contracts, but this does not mean full freedom. Many companies try to transfer financial responsibility for complaints, shortages or “quality penalties” to contractors or self-employed workers.
— Even in mandate and B2B contracts, the freedom to shape the content of the contract has its limits. Provisions that grossly violate the principles of social coexistence or result in shifting the entire risk of the business to one party may be considered invalid, the expert emphasizes.
Illegal deductions are a misdemeanor
Every year, the National Labor Inspectorate records hundreds of cases of illegal deductions. Failure to pay remuneration – even part of it – constitutes an offense against the employee's rights. This can result in fines, and in more serious or repeated cases, the case goes to court.
An employee has the right to know:
- on what basis the deduction was made,
- in what amount,
- on what legal basis.
If the employer cannot demonstrate this, the deduction is unlawful.
What can an employee do?
If an employee suspects that a wage deduction or penalty has been imposed unfairly, he or she may:
- ask for a written explanation,
- check whether the deduction is included in the list of allowable deductions,
- demand correction of the payroll and payment of the full amount of remuneration,
- report the case to PIP,
- if necessary, file a lawsuit for payment of the outstanding part of the remuneration and interest.
— Wage protection works effectively when the employee uses the mechanisms available to him. Reporting irregularities helps eliminate unfair practices from the market, sums up Angelika Czarnecka.
