This is a situation we have encountered several times over the last few weeks: the general management of an international group sent a memo stating that all salaries are reduced by 20% due to the coronavirus. But in the Netherlands, that is not acceptable.
- klik hier voor de Nederlandse versie van deze tekst -
Another situation: the annual salary increases are postponed for a few months because of the uncertain situation. Is that allowed? No, that is also not allowed 'just like that'.
Below, we briefly explain the rules in different countries. This helps us to explain why foreign management teams sometimes come up with drastic measures that are not possible under Dutch law and regulations. We will then show how the proposed changes in salary policy are dealt with in the Netherlands. We provide answers for both situations:
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- general management wants to reduce the salary
- general management wants to postpone salary increases
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