Legal Question in Employment Law in Puerto Rico
Change of terms of contract after signing
Can the terms of a contract be changed after it has been signed? An increase in wages for an employee was recommended and approved. After the employee signed a contract that stipulated the new amount and received the increase for a month, the human resources office notified her that there was an error in the process (the increase had not been approved by the correct office/person). Therefore, the increase would be subtracted from her next check and her wages would revert to the original amount. Is the institution bound by the contract?
1 Answer from Attorneys
Re: Change of terms of contract after signing
If the approval was performed within the terms of the original contract with the institution, then you may have a claim for contractual binding to the raise obtained. If, on the other hand, you did not obtain a raise within such parameters then the raise should not be binding. However, it is very dubious indeed if the increase paid, even when erronously paid, may be discounted from the next payment. Wages are wages and payments for services performed under contract are payments. Employees work for wages and the amount cannot be discounted because there should not be any self-help, in Puerto Rico, in that context. The employer should attempt recovery through traditional means of money collections. But, wages discounts are disfavored in Puerto Rican law and unilateral discounting is often illegal. If the employee is a government employee then the discount must follow due process considerations, probably including an informal hearing.