Modern Employment Conditions: (4) Changing Employment Conditions

When you, as an employer, choose to modernize employment conditions, this will likely also lead to changes in employment conditions. Think, for example, of changing the workplace, the number of vacation days, or a different pension fund. Changing employment conditions cannot be done just like that.

There are three ways to (unilaterally) change the employment conditions of employees.

1. Employee Consent
   This is the safest and most pleasant route. If the employee and employer agree on the change in employment conditions, the employee can, for example, sign a letter or addendum in which they agree to the change. It is important that the employee is well-informed about the change and consciously agrees to it. In the case of a change to modern employment conditions, it is likely that this will be a positive change for the employee. In that case, it is logical that an employee will consent to the change in employment conditions.
2. Unilateral Amendment Clause
   Often, a unilateral amendment clause is included in the employment contract, the collective labor agreement (cao), or, for example, the employee handbook. This means that as an employer, you have the authority to unilaterally change employment conditions. For the change, the employer must have a compelling reason for which the employee's interest in not changing the employment condition must give way. It is not expected that you, as an employer, would need to invoke such a clause in the case of a change to a modern employment condition that is favorable to the employee. This clause is generally invoked more often when it concerns a change that is to the employee's disadvantage.
3. Good Employment Practices
   When no unilateral amendment clause is included in the employment contract, the employer has the option to change the employment conditions when the employee, as a 'good employee,' is obliged to agree to a reasonable proposal from the employer. In principle, an employee must accept a reasonable proposal from the employer unless it cannot reasonably be expected of them. Here is a step-by-step plan:
   
   - Are there changed circumstances that make it necessary to change the employment contract?
   - Is the proposal to change the employment contract reasonable in light of all the circumstances of the case?
   - Can acceptance of the proposal reasonably be expected from the employees?
   
   If these questions can be answered affirmatively, the employee is obliged to accept the employer's proposal based on good employment practices. This is a stringent test that can vary for each employer. Again, it is not expected that this method needs to be used in the case of a change to a modern employment condition that is favorable to the employee.

1. Inventory the Agreements: What are the current employment conditions? Is there a collective labor agreement (cao) to which you, as an employer, are bound? Is there a unilateral amendment clause included in the employment contract, the cao, or the employee handbook?
2. Involve Employees in the Process: When employees are involved in the process of changing employment conditions and have contributed to the modernization of employment conditions, they will be more inclined to agree to the change.
3. Involve the Works Council: Does your organization have a works council? Then it is quite possible that the change to modern employment conditions requires the works council's consent. In that case, involve the works council in a timely manner!
4. Communicate the Benefits: Ensure that employees are aware of the benefits of changing employment conditions. For example, organize a meeting where you explain the changes and give employees the opportunity to ask questions.
5. Document the Agreements in Writing: Ensure that you document the agreements with employees in writing. This way, everyone knows what to expect from each other.

Do you have questions about modern employment conditions? Contact Sietske Bos, attorney at law Employment Law specializing in modern employment conditions.

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• Flexibility
• Sustainable Employability
• Green Employment Conditions
• Changing Employment Conditions

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