Employer's unilateral pay system change causing pay cuts is not a valid termination ground.
Legislator summary
AI generatedThe Supreme Court dismissed the employer's claim to terminate the employee's contract based on a unilateral change to the pay system. The employer argued that reducing wages constituted a fundamental breach of the employment agreement, while the employee contended that pay adjustments are inherent to the contract. The court ruled that such a change does not justify termination unless it violates the principle of good faith or the specific terms of the agreement.
Legislator headnote
AI generatedSection 10 of the Employment Contracts Act; A unilateral reduction of wages by the employer does not constitute a valid ground for terminating the employment contract.
Keywords
AI generatedCited Legislation
AI generatedCited Case Law
AI generatedRelated Decisions
AI generatedFull text
Kysymys työnantajan oikeudesta irtisanomisperusteella yksipuolisesti muuttaa työntekijöiden palkkausjärjestelmää, kun muuttaminen johti palkkojen alenemiseen. Vrt. KKO:1991:187
Ks. KKO:1996:89