Suspension of the Payment of Employer's Contributions to a Group Insurance Plan: Unilateral Modification of an Essential Term of the Employment Relationship?
In a judgment of 2 December 2014, the Brussels Labour Court of Appeal ruled on a case brought by an employee against a Belgian company which had unilaterally decided to suspend the payment of its contributions to the group insurance (pension) plan for economic reasons. The appellate court held that the employer's contributions to the group insurance plan constitute an essential term of the employment relationship given the increasing importance of extra-legal pensions. Pursuant to the Employment Contracts Act of 3 July 1978, the employer may not unilaterally modify an essential term of the employment relationship.
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