Substantial Modifications to Employment Contracts
Substantial and Non-Substantial Changes to Working Conditions
The law allows the employer to modify certain characteristics of the employment relationship to suit the new requirements of the company without having to lay off workers. There are two types:
- Non-substantial modification: The employer can make minor changes in the employment contract and the employee must accept them without being able to oppose them.
- Substantial modification: When there are proven economic, technical, organizational, or production reasons, the employer can make major changes to the employment contract. These are changes that directly alter and transform the employment relationship because they affect important issues such as the schedule, the workday, and the system of remuneration.
Modification Procedure
| Procedure Step | Details |
|---|---|
| Notification | The employer notifies the employee of its decision unilaterally, based on proven economic, technical, organizational, or production reasons. |
| Term | Notification should be provided with a minimum of 30 days' anticipation from the date of its effectiveness. In the case of collective substantial amendments, the decision must be preceded by a period of consultation with employee representatives of no less than 15 days. |
| Effects | The worker can accept or reject the amendment, adopting one of the following decisions: seek rescission of the contract, apply to a judge for the resolution of the contract, or dispute the changes before the social court. |
Functional Mobility in the Workplace
Functional mobility occurs when the employer directs the employee to carry out functions other than those being carried out regularly and for which they were recruited.
Categories of Functional Mobility
- Functions in the same or equivalent category: When the employer wishes, they can freely ask the worker to perform other functions where the tasks in question belong to the same or an equivalent category.
- Functions of a lower category: The employer may require the worker to perform tasks of a lower category where there are urgent and unforeseeable technical or organizational reasons. This is limited to the time required.
- Functions of a higher category: The employer may assign the worker to carry out functions that correspond to a higher category where there are technical or organizational reasons. This is also limited to the time required.
Effects and Employee Rights
- Mandatory Acceptance: The worker must accept the change obligatorily and will continue to receive the same salary.
- Dignity and Training: Changes should be accepted provided that they do not undermine the worker's personal dignity or cause injury to their professional formation and promotion.
- Wage Protection: The worker is entitled to continue receiving the wage they were previously earning, and it may not be reduced.
- Higher Category Pay: The worker is entitled to receive the salary for that higher professional category.
- Promotion Rights: The worker can ask for a promotion from their category where functions are performed for a period of 6 months within one year, or 8 months within a period of two years, unless the collective agreement has established otherwise.