DISMISSAL FOR VARIATION OF CONTRACT
|DISMISSAL FOR VARIATION OF CONTRACT
Term used to refer to the situation where an employer pronounces a dismissal in the event that an employee fails to accept, within a specified period of notice, an accompanying offer of changed terms and conditions under the contract of employment. In such cases dismissal is subject to a suspensive condition, i.e. its operation is postponed until the employee has failed to inform the employer of his or her acceptance of the offer of changed terms and conditions within the stated time-limit; it is rare for such dismssal to take place subject to a resolutive condition. Although prevailing legal opinion in Austria regards it as perfectly lawful, dismissal for variation of contract can also be contested before the courts in an attempt to have it declared null and void in the same circumstances as other forms of dismissal (see protection against dismissal). In practice, the situation in which it is particularly likely to occur is where the employer, because of economic difficulties, wishes to discontinue discretionary individual pay elements and other benefits (Sozialleistungen) or allowances to which the employee has acquired entitlement. To that extent, dismissal for variation of contract funtions as an instrument of flexibility with regard to wage costs. The employer's ability to do this is, however, balanced by the employee's right to claim unfair dismissal.