Can an employer adjust a position or salary according to the last elimination system ?

Mondo Social Updated on 2024-02-01

When faced with underperforming employees, employers often consider adopting the "last elimination system" to adjust their positions and salaries. However, whether this practice is legal and whether it can be adjusted according to the "last elimination system" has always been the focus of attention of enterprises and employees.

Recently, a real-life case has attracted a lot of attention. Ye joined a network technology company in March 2017, but in April 2020, the company notified him to participate in a one-week learning improvement plan on the grounds that his performance had been counting down for a long time and had not improved after many communications. Ye refused. Subsequently, the company paid him a basic salary in April and May, but did not pay a performance pay. In June 2020, Ye terminated the labor contract on the grounds that the company failed to provide labor conditions as agreed in the labor contract and failed to pay labor remuneration in full and in a timely manner. Subsequently, Ye applied to the Labor and Personnel Dispute Arbitration Commission for arbitration, demanding that the network technology company pay the difference in wages.

However, after hearing the case, the court held that the enterprise could improve the quality and efficiency of the employees who were at the bottom of the performance appraisal by transferring, demoting, salary adjustment, organizational learning, training, etc. This is a way for companies to optimize their management of talent, and it does not violate the law. If the employee refuses to accept the reasonable arrangement of the enterprise without justifiable reasons, he should bear the adverse consequences. Therefore, the court rejected Ye's request, holding that the company was not required to pay the difference in wages.

This case has important implications for both enterprises and employees. For enterprises, the "last elimination system" is not a one-size-fits-all solution. When adjusting employees' positions and salaries, companies must ensure that their actions are legal and compliant, and that they are consistent with the employee's contractual agreement. In addition, companies need to fully consider the rights and feelings of employees to avoid adverse effects on their physical and mental health.

And for employees, it is important to understand their rights and contractual agreements. If the enterprise adjusts the position and salary without consultation, the employee has the right to protect his or her rights and interests in accordance with the law. At the same time, employees should also continuously improve their professional skills and qualities, and avoid becoming "last" by working hard.

In short, as a management tool, although the "last elimination system" has a certain degree of rationality, its implementation must comply with the law. In practice, enterprises and employees should jointly abide by laws and regulations, protect the legitimate rights and interests of both parties, and jointly promote the healthy development of enterprises.

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