Amendment to Employment Contract: When Are They Legally Unenforceable?

In the private sector, a deeply rooted misconception persists: “If an employee has voluntarily signed an amendment to their employment contract, the agreement is valid and the employer is protected against any inspection fines or lawsuits.”

This assumption is based on the traditional civil-law principle of freedom of contract. However, under the labour law of the Republic of North Macedonia, contractual autonomy is strictly limited by mandatory statutory provisions and collective agreements.

Another common reality is that private companies have not adopted their own internal Salary Rulebook or Job Classification Rulebook. In such cases, employers mistakenly assume that a “legal vacuum” exists, allowing them to agree on any salary through an amendment, provided that it does not fall below the statutory minimum wage.

This is a serious legal mistake. Where no internal rulebook exists, the provisions of the General Collective Agreement for the Private Sector in the Field of the Economy (GCA-PS) apply directly and immediately.

This article provides a detailed legal analysis of when an amendment to an employment contract may fail the test of legality, why an employee's signature does not cure a void amendment, how four key reassignment scenarios should be assessed, and what consequences may arise from an inspection by the State Labor Inspectorate (SLI).

The Law's Protective Mechanism: Why Can an Employee's Signature on an Amendment Create a Risk?

The position, job description and amount of basic salary are mandatory elements of every employment contract. Any changes to these elements must be made in writing, with the consent of both parties, through an amendment to the employment contract.

However, the freedom of the contracting parties is not unlimited. The Labour Relations Law also provides that an employee cannot legally waive the rights and salary level guaranteed under a collective agreement. An amendment that grants the employee fewer rights than the applicable collective agreement provides has no legal effect to that extent.

This means that any clause in an amendment that provides less than the minimum standard established by a collective agreement is void ab initio, that is, void from the outset.

How Does the General Collective Agreement Value Work When a Company Has No Salary Rulebook?

Where a company has not adopted its own salary rulebook, the GCA-PS establishes a framework for evaluating different jobs.

Basic salary must reflect the complexity of the work, the level of responsibility, the required professional qualifications and the requirements of the position. Jobs are descriptively classified into categories, ranging from simple and repetitive tasks to more complex work requiring independence and initiative, as well as highly specialised, creative and managerial functions.

This means that the company must comply with the minimum amount prescribed for the relevant level of job complexity.

Practical Scenarios: When Is an Amendment Legally Defensible, and When May It Be Invalid?

Scenario 1: Promotion to a Higher Position Without Increasing the Existing Salary

Example: An employee performing routine operational tasks is reassigned to a managerial or more complex position involving greater responsibility, but the employer retains the employee's existing salary.

Legal assessment: The amendment is void with regard to the salary provision. A position involving greater complexity and responsibility may require a correspondingly higher basic salary under the levels established by the GCA-PS. An employer cannot impose significantly more demanding duties and greater responsibility while retaining the salary previously provided for simpler work.

Exception: This may be permissible if the employee's existing individual salary was already above the applicable collective-agreement minimum for the new, higher-level position

Scenario 2: Reassignment to a Lower Position with a Correspondingly Lower Salary

Example: Due to organisational changes or a reduction in workload, an employee is permanently reassigned to a position involving less complexity and responsibility, and their salary is reduced through an amendment.

Legal assessment:The amendment may be legally defensible, provided that the applicable procedure is followed. A less complex position may justify a corresponding reduction in salary, provided that the salary does not fall below the statutory minimum wage. If the employee agrees, the parties may sign an amendment by mutual consent. However, if the employee refuses to sign, the employer cannot unilaterally reduce the employee's salary. In that case, the employer must follow the procedure for terminating the existing employment contract while offering a new, amended contract, providing written reasons and allowing the employee 15 days to respond. The employee may accept the new, lower-level position while retaining the statutory right to challenge the grounds for the change before a court.

Scenario 3: Reassignment to a Lower Position While Retaining the Higher Salary

Example: An employee moves to a position involving less complexity, but the company decides to retain the higher salary previously paid.

Legal assessment: The amendment is valid and generally defensible. The law and collective agreement establish minimum protections for employees' rights, but they do not impose a general upper limit on salary. More favourable contractual rights may be agreed upon for the employee.

Scenario 4: Temporary Reassignment to Different Duties (Covering an Absent Employee or Reduced Workload)

Example: To cover for an absent colleague or respond to a temporary decline in workload, an employee is assigned lighter or different duties for a period of up to two months under a written decision or amendment.

Legal assessment: An amendment or decision reducing the employee's salary during this period is unlawful. Where an employee temporarily performs different duties within the scope of their professional qualifications—for up to two months, or up to one year when replacing an employee on sick leave—the employee is entitled to the same salary as at their regular position, or to whichever salary is more favourable to them. During such temporary reassignments, a reduction in remuneration is strictly prohibited

Scenario 5: Salary Reduction for Employees Remaining in the Same Position Due to a Business Crisis

Example: An employer experiencing financial difficulties offers employees amendments providing for a percentage reduction in salary without changing their positions.

Legal assessment: Such an amendment is legally questionable and may be invalid if the applicable collective-agreement procedure has not been followed. Private companies cannot arbitrarily reduce salaries through ordinary amendments to employment contracts. Such a departure is permitted only where the strict statutory conditions have been satisfied.

Labor Inspection and Legal Consequences

Where an amendment is not legally defensible, the company may face significant legal and financial consequences. Labour inspectors supervise compliance with applicable legislation and collective agreements. If a violation is established, the inspector may issue:

• An inspection order: The inspector may issue a decision requiring the employer to remedy the violation, address the disputed amendment and pay the appropriate salary.

• Financial penalties: Including provisions in an amendment that conflict with a collective agreement, failing to pay salaries in accordance with a collective agreement, and amending an employment contract contrary to law may constitute misdemeanours. Depending on the company's revenue and number of employees, cumulative fines of EUR 200 to EUR 1,000 may be imposed on the company. The responsible manager may also face a separate personal fine of EUR 150 to EUR 400.

In parallel with the inspection process, the employee has the right to seek judicial protection. The employee may bring monetary claims directly before a civil court, regardless of the deadlines applicable to prior objections or complaints. Since monetary claims arising from employment are subject to a three-year limitation period, an employee may sign an amendment, continue working for some time and subsequently bring a claim before the court.

* CONCLUSION

The absence of an internal Salary Rulebook does not give private-sector employers unrestricted discretion. The classification and salary standards established by the GCA-PS may impose directly applicable minimum requirements that employers must observe.

An amendment that provides for a promotion without the corresponding salary adjustment required by the applicable collective-agreement standards, or that introduces a blanket salary reduction without following the required procedure, may be legally invalid from the date it is signed.

Such documents do not create legal certainty. Instead, they may expose the employer to future financial liabilities, interest, litigation costs and administrative penalties.

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Disclaimer: This article has been prepared for informational purposes only and does not constitute legal advice or instructions for taking action in a specific case. Legal matters are complex, and each situation has its own particular circumstances that must be assessed individually. We therefore recommend consulting a qualified lawyer who can assess your specific circumstances and identify an appropriate solution.