The limit for “self-terminating” a contract after a material modification to conditions
In the last quarter of 2016, the Supreme Court had occasion to rule on the possibility of rejecting the application of the employment contract termination mechanism contained in article 41.3 of the Workers’ Statute (WS) where the harm suffered by the worker is not evidenced.
The facts of the case were as follows.
In December 2013, the employee received a letter notifying him of the application of a measure of material modification of working conditions agreed to in the consultation period that was conducted at the company. The consultation period concluded with an agreement signed with the unanimous support of the negotiating committee. The practical consequence of the modification notified was that, effective January 2014, a salary reduction of 3.87% would be applied to the employee, which entailed a reduction in his paycheck of €77.38 net per month.
Read more on Garrigues Labor and Employment Blog