25 November 2022

De Brauw's employment team successfully litigated in front of the Supreme Court on a collective unilateral change in a pension scheme.

Stefan Sagel

Supreme Court litigation on a collective unilateral change in a pension scheme. IFF implemented an employee's premium in their pension scheme for a certain category of employees, to which these employees did not agree. The Subdistrict court and Court of appeal ruled in the employees' favour, stating that IFF was not entitled to unilaterally change the pension scheme on the basis of the standard of good employership (section 7:611 DCC). De Brauw's employment team successfully litigated in front of the Supreme Court, which held that the relevant standard based on section 7:611 DCC not only applies to individual unilateral changes of employment conditions, but also to collective changes. In addition to that, the Supreme Court held that the Court of Appeal applied the relevant standard too strict, by holding that it can only be relied upon if a continuation of the existing terms and conditions is manifestly unfair to the employer. The threshold for the employer to be able to carry out a unilateral change is lower. This is an important clarification and elaboration of existing case-law on the unilateral change of employment conditions by an employer.