Be aware of salary limits and your observation points
What limits are set to become employed on an individual contract, and what should you be aware of as an employee in Danske Bank? Get your answers from Finansforbundet's chief legal expert.
79,200 DKK.
This is the threshold in the standard collective agreement to be employed on an individual contract in the financial sector.
And then not. Because although it may sound relatively simple to determine whether you earn more or less a 79,200 DKK, there are also a number of conditions that must be met before you can be employed as a so-called contract employee or become a contract employee.
Mette Hjøllund Schousboe, chief legal expert in Finansforbundet, explains.
”Partly the salary must be above the amount determined and regulated in the company collective agreement, but in addition it must also reflect that you either have a number of fixed assets or that the financial value of these goods is added to the salary,” she says and lists the benefits, these are the following:
Employer's pension contributions, care days and special holiday supplement”.
This means that if you get the employer's pension contributions and care days, but do not receive the special holiday supplement, the value of the latter good must be added to the limit of the 79,200 kroner.
See calculation overview (Excel)
And how do you find out?
”It must be stated in the contract, because now you no longer have the agreement. So you simply have to make sure that you check the contract thoroughly or have Finansforbundet check that everything is right,” says Mette Hjøllund Schousboe and tells us that it often happens that Finansforbundet's legal department finds errors in determining the threshold amount, when they read members' contracts through.
Contract employee or not?
The difference between being employed on a collective agreement or contract depends on your rights in connection with your employment.
The people who are stated in the collective agreement that Finansforbundet negotiates or those who are stated in your individual contract, which you must negotiate through yourself.
”Where employees under collective agreements can sit back more because most of the essential benefits are described in the collective agreement. Therefore, contract employees, needs to be more aware. You simply need to keep track of the fact that the contract says everything,” Mette Hjøllund Schousboe says.
But what is the advantage of being a contract employee?
For the individual, this may mean that the collective salary adjustment is not followed by the collective agreement, and thus there may be more free play in relation to negotiating any pay increases with the employer. While it may be an advantage for employers not to be bound by a collective agreement, the chief legal expert, explains.
”We have a relatively detailed agreement, both in terms of working time rules, remuneration rules, rules on freedom and so on. And the employer will be given a slightly more free position if they contract the employee on an individual contract. They do not have to involve the other party to the collective agreement if they want to change the terms for this group of employees,” she says.
Check the contract thoroughly
She stresses that it is particularly important as a contract employee to be aware that there are some things that are laid down in the agreement that may be taken for granted, but which therefore do not necessarily apply when you are employed on an individual contract. For example, senior part-time employment or maternity rules.
It is important to consider what are the benefits I have now and what is what I need in the future, Mette Hjøllund Schousboe, says”.
She explains that the agreement stipulates that the contract for individual employees must include sections on when to have their salary, holiday and holiday supplement adjusted, leave to care for a close relative and a section on when to produce a medical certificate.
”The four things they have to bring along, everything else is optional. The collective agreement contains a number of other terms that you can take into account when it is ”relevant” but who is it to judge?
There we find that companies tend to think that there are many things that are not relevant,” the chief legal expert says and suggests that you sit down and assess whether it might be relevant for you in the long term, that the contract includes sections on maternity leave or leave when adopted.
”And if it is or could become relevant to you, we must make sure that the employer writes what your legal position is. Do you have the same options as under the collective agreement, or does it apply anything else? So you will assess on a fully informed basis whether it is for you,” Mette Hjløllund Schousboe, says, and points out that here she is based on an employee who goes from being employed on a collective agreement to being employed on an individual contract.
You cannot say no
Since the last agreement, the legal department in Finansforbundet has experienced a flow of employees on individual contracts.
”We have received several requests about it because the members do not feel it as favourable. At least not those who have come above the salary limit after a small salary increase,” Mette Hjøllund Schousboe says.
But can you as an employee start speculating that you would not want to increase in salary in order not to get over to an individual contract
No, Mette Hjøllund Schousbo eemphasizes.
”You cannot say no to a salary increase. And the employer can contract you if you cross the pay threshold,” she says.
However, she explains, you can legal advice from Finansforbundet whether it would be a significant change if you are transferred from employee subject to collective agreement to contract staff.
And if the conditions have so much been tampered with that a significant change in position, you can say no with the effect that you can consider yourself terminated with the employer's notice and may be entitled to a compensation if your seniority is long enough, she explains”.