Wage conditions

The employer is obliged to agree wage conditions either in an employment contract with the employee or in a collective agreement (Section 119 (2) of the Labour Code).

An agreement on wage conditions is an essential component of, and must be included in, the employment contract. Only in the event that the wage conditions are already agreed in the collective agreement is it sufficient to include in the employment contract a reference to the relevant provisions of the collective agreement. If a certain claim is regulated by the Labour Code, it is sufficient to make a reference to the relevant provisions thereof.

The wage conditions shall include in particular the agreed forms of employee remuneration, the amount of the basic wage component and other employee benefits provided for work, as well as the conditions for providing the same (Section 119(3) of the Labour Code).

The conclusion of an employment contract and the arrangement as to its content, including wage conditions, is a legal act that must be done freely and seriously, definitely and comprehensibly; otherwise such a legal act would be invalid (Section 37 of the Civil Code).

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