Senior executive: Three reasons why this status is not in your interest

Have you received a letter from your company formalising your status as a senior manager even though you were covered by a Collective Bargaining Agreement? Have you signed an employment contract or a supplementary agreement and become a “false executive”?  If you have doubts, you should know that these are well-founded. Read on to discover why in 3 points, and above all why you should challenge your status of “senior manager”.

1. As an exec, you are owned nothing for overtime
   By accepting this senior executive status, you can say goodbye to overtime pay. Since you are not covered by a collective agreement, the number of hours you work can vary greatly from week to week. You have to achieve your objectives, and no matter how long it takes, you won't be paid more. A very good reason to refuse this status.
   
   
2. You will lose the benefits negotiated in your Collective Bargaining Agreement
   Here's another argument that should encourage you to stay within the collective agreement: an employee who becomes a senior manager doesn't get a 13th month or a loyalty bonus. If you absolutely must have benefits in kind, we advise you to negotiate them before signing your employment contract. And don't hesitate to take out a supplementary health insurance policy outside your company. This will avoid a number of difficulties.
   
   
3. You do not have the same rights when you are made redundant for economic reasons
   As a “false executive”, you are not entitled to double your notice period, nor to an increase in severance pay. If you work for an insurance company, you are not entitled to an outplacement budget.

Do you have executive status but don't think you meet the conditions laid down by law? Contact ALEBA to have your contract analysed at legal@aleba.lu.

Want to learn more? Read our article “Exec or not: Do your working conditions make you a real senior manager?”