In previous articles, we tried to draw attention to important issues in the context of remuneration for work – first of all, when an employee is entitled to it, and when, in the event of defective performance of work, the employer may not pay him this remuneration.
In today's article, we will discuss the issue of protection of remuneration for work in terms of waiving the right to remuneration, the date of its payment, as well as the forms and methods of payment, as well as the issue of its deductions.
Can remuneration be waived?
Remuneration is the source of income for the employee and his family members, therefore waiving the right to it would be an act to the detriment of the employee.
The scope of the prohibition on waiving remuneration may be questionable. Interestingly, the prohibition does not cover payments guaranteed in an employment contract that are not based on labor law provisions and do not constitute remuneration for work or fulfill a similar function, such as compensation paid to a member of the management board of a company in the event of their removal from the supervisory board or the expiration of their term as a member of the management board, or a claim for interest on unpaid remuneration.
An interesting issue is the conclusion of a modification agreement, i.e., the employee submitting a declaration of intent in which they consent to a reduction in their remuneration. Case law indicates that this is certainly permissible, as long as the employee does not waive the right to remuneration.
Fixed salary payment date
Another element of salary protection is the requirement to establish a fixed payment date in advance. Salary is a periodic benefit, typically calculated and paid to the employee once a month. However, this is a maximum period, meaning it is entirely permissible to shorten it, for example, to a week. Shortening the period does not in any way harm the employee's interests; in fact, some employees prefer this method of receiving their salary.
It's important to remember that setting a salary payment date doesn't usually involve specifying a calendar date, but rather a specific day of the following month on which the payment is due. If this date, for example, the 10th of the month, falls on a non-working day, such as a Sunday, then salary payment falls on the preceding day, which in our case is Friday.
In what situations can deductions from wages occur?
Deductions from wages include, among others, amounts enforced under enforcement titles for maintenance payments, cash advances, and fines. Deductions apply to all components of wages – fixed and variable, paid monthly or at other intervals, in cash or in kind. However, other work-related benefits, such as anniversary bonuses or cash equivalents for unused vacation time, may raise doubts. This issue was resolved by the Supreme Court, which unequivocally ruled that additional benefits are not protected from deductions.
It should also be emphasized that the provisions of the Labor Code define a closed list of titles that may constitute a basis for deductions. Therefore, in accordance with the established case law of the Supreme Court, an employer may not deduct other amounts due without the employee's consent (Supreme Court judgment of June 11, 1980, I PR 43/80, Legalis).
The regulations also provide for the order and limits of deductions, and so, first of all, public law liabilities and payments made to the employee capital plan are subject to deduction, and then, successively, amounts enforced under enforcement titles to satisfy maintenance obligations, amounts to satisfy other benefits, cash advances granted to the employee and, finally, financial penalties.
Amounts free from deductions
The provisions of the Labor Code further limit the amount of deductions for certain titles that allow deductions, in the form of deduction-free amounts, i.e., the amount that should remain payable to the employee after deductions have been made. This regulation reflects the function of remuneration, which is to serve as a source of support for the employee and their family. Interestingly, a deduction-free amount has not been established for deductions made for maintenance payments, which should be understood as an expression of the principle of first meeting the existential needs of those entitled to these benefits, and only then the employee themselves.
Therefore, the amount of remuneration for work that is free from deductions is as follows:
- minimum wage – in the case of deductions of amounts enforced under enforcement titles to cover debts other than maintenance payments;
- 75% of this minimum wage after deduction of cash advances to the employee
- 90% of the minimum wage after deduction of fines.
This regulation ensures a minimum standard of living for an employee who has obligations under the above-mentioned titles.
Summary
A key element in understanding wage protection is recognizing its maintenance function, which establishes that wages constitute a source of income for the employee and their family. Therefore, regulations specifically and categorically protect an employee's right to remuneration, whether by prohibiting waivers or by specifying specific limits on deductions from wages. However, as can be seen, even such strict rules can have exceptions, so it's crucial to have a basic understanding of this area.
For more information on remuneration (and more!), please contact our office.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 14, 2023
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