In joint-stock company B, the collective agreement was amended in 2010. The modification included the suspension of jubilee bonuses as a result of poor financial performance of the company. The modification were duly agreed with trade unions and in writing and attached to the collective agreement (the annex is known as ‘additional protocol’) with effect from 1 January 2011. No further jubilee bonuses were paid after the date.
No amending arrangements were concluded with the employees or did the employees receive any letters of amending termination.
Consequently, employees continue to enjoy the right to jubilee bonues even though the suspension was agreed with the trade unions. According to Article 2419 Para. 1 of the Labour Code any amendment to any collective agreement must be made in the form of and additional protocol. Additional protocols are subject to the same provisions that apply to collective agreement. Article 24113 Para. 2 of the Labour Code. stipulates that any new provision of a collective agreement that should be less favourable for employees shall be introduced by way of terminating the existing employment contracts or another instrument that defines the employer-employee relationship.
The cost of such omission is usually very high and can easily be assessed.