Legislator Case Law & Legislation
KKO 2504/1996 AI generated

Employer's unilateral pay system change causing pay cuts is not a valid termination ground.

Case Number KKO 2504/1996
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

The 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

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Section 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

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unilateral pay reduction termination ground validity employment contract terms good faith principle employer rights

Cited Legislation

AI generated
Section 10 of the Employment Contracts Act 1995

Cited Case Law

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Full text

Kysymys työnantajan oikeudesta irtisanomisperusteella yksipuolisesti muuttaa työntekijöiden palkkausjärjestelmää, kun muuttaminen johti palkkojen alenemiseen. Vrt. KKO:1991:187

Ks. KKO:1996:89