Common use of Promotion and Demotion Clause in Contracts

Promotion and Demotion. A career can sometimes lead to a different position at the same level, sometimes to a position at a higher level (promotion) and sometimes to a position at a lower level (demotion). Appendix 1. The promotion increase amounts to 6% of the present gross monthly salary for every salary scale that the employee moves upwards. The new salary after allocation of the promotion increase at least equals the minimum of the new salary scale. The maximum of the new salary scale cannot be exceeded with the allocation of the promotion increase. The promotion increase also applies if the employee moves from a middle level to a senior position and moves up on General a higher salary scale grade. The promotion increase also applies if the employee moves from a preliminary scale to a full- fledged professional scale. Working at Aegon 2. If an employee starts performing a position at a lower level (demotion) then that employee will be immediately classified in the new salary scale. If the present salary of the employee is higher than the maximum of the new salary scale then the difference is converted into a personal supplement to the salary. The said demotion supplement Training and development is phased out in two years. If the demotion supplement amounts to € 600.00 gross per month or more then the supplement is phased out in three years. The flex budget is allocated to the supplement, the supplement is pensionable and is in case of redundancy included in the calculation of the personal budget (redundancy plan). The demotion supplement does not increase with general salary increases. Income Time and place 3. The demotion scheme does not apply if it is requested by the employee or if the adjustment to the employment contract is a result of long-term invalidity. In those situations, the employee will be classified in a lower pay scale immediately and a phase-out arrangement will not apply. 4. Arrangements that were stipulated with the employee about demotion prior to July 1, 2018, remain in full force and effect. See appendix 4.