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Wednesday, August 9, 2017

Compulsory Increase of Wage

The employee performs a work for a remuneration such as it was fixed at his hiring. But he hopes that, over the years, this remuneration will evolve. What are the rules?

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Compulsory increase of wage: rules on wages


Wages may be subject to several rules, such as the law, the collective agreement, the contract or an amendment to the contract of employment.

The legal obligation to increase wages


As a matter of principle, the salary must be increased when it is set at the legal minimum, ie the minimum wage for growth, and that threshold changes.

The minimum wage for growth was created to ensure that employees with the lowest remuneration guarantee their purchasing power and participate in the economic development of the nation.

It applies to employees of private enterprises and is revalued once to twice a year.

The obligation to increase wages by collective agreement


But the employee can benefit from a remuneration higher than the minimum wage for growth, notably thanks to the provisions of the collective agreement.

In this case, and if the provisions of the collective agreement are extended, then they become binding on all employers in a sector of activity.

The same shall apply if the undertaking has acceded to an employers' organization which is a signatory to the agreement, even if it is not yet in force.

The obligation for the employer to take account of development in the situation


The increase in wages caused by the existence of a professional inequality

Another, more indirect, case is the wage increase: when wage inequality exists and is established by judgment, and it is now appropriate to relocate all employees in the same situation.

The law requires that the principle that "equal pay for equal work" must be respected for employees with the same duties, diplomas and level of responsibility.

Collective agreements also aim to verify compliance with the principle of equal pay for equal work, the principle of equal treatment for women and men and the principle of equal treatment between employees irrespective of their belonging or non-belonging, true or supposed, to an ethnic group, a nation or a race, as well as measures taken in favor of the right to work for persons with disabilities by setting up dedicated committees.

What if there is no legal increase or according to collective agreements?


It is then necessary to keep to the other means at disposal. In companies with more than 300 employees, annual mandatory bargaining must be organized annually. On this occasion, the issue of remuneration must be addressed.

This negotiation also concerns the scheduling of measures to eliminate pay gaps and differences in career development between women and men.

Nevertheless, this negotiation presents a limit: the obligation is reduced to negotiate, not to result in a negotiation raising wages.

The last alternative for wage increases is an individual request: the employee can use the annual appraisal interview, or an interview held at his request, on this occasion.

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