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Change the variable often requires a simple consultation of the company.
Nothing prevents an employer to actually change the rules of remuneration of its employees. But it must do so within very strict procedures governed by the Labour Code, on pain of risking being dragged to court.
The determination of the fixed portion of remuneration is "contractual" and can not be modified without the explicit agreement of the employee. If individuals refuse this "substantial change in the employment contract, the employer may initiate dismissal proceedings against them economically. But if more than ten employees find themselves on the floor for refusing the new fixed part, the employer must implement a "plan to safeguard employment (social) long and uncertain legal outcome. "The company can cover legal reprisal if the change is made on a voluntary basis," said Virginia Devos, a lawyer specializing in employment law with the firm August & Debouzy. What seems to be the case at IBM where "free choice" was left to each employee.
It is quite different from the setting of the variable, not under contract. To be applied, a new commission plan must be presented to elected works council - who are "invited" to give their opinions - at a procedure known as information-consultation. "There is a delay of thoughtfulness to be maintained between the presentation of new rules for setting the variable and entered into force," warned nonetheless Virginia Devos. This time, not defined by law, is on average three to four months and is the subject of litigation before the courts.
Another limitation: the multiplication of judgments of the Supreme Court stating that the definition of the variable remuneration shall, under pain of being broken, be under contract (part of the employment contract) and therefore require the agreement employees to be applied.
IBM is not the first company to change its compensation rules (Axa had done). And it might not be the last, given the circumstances.
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