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Hello.
This is the first time i have had to make a post on this type of site.
We have just been told that of the 1st March we will be taking a 10% pay cut with the same hours,can they do this?their has been no consultation or anything this is the first we have heard.
What are our rights to this sort of thing?we all have contracts and all have more that 10 years service.
Many thanks for any help
as far as i am aware your employer is not allowed to make a unilateral change to employment conditions without consulting you.
however they might try and make out that this letter constitutes the consultation nd you should raise any greivances now.
hopefully elche or someone will be along to advise propper later.
DCAs:-
NDR, C.A.R.S, NCO, Moorcroft...Sent packing Other:-
Orange:- Account closed, debt written off, refund made.
Books Direct (BCA):- Fraudulent account closed, Cease and desist order issued.
Local Council:- £65 compensation recieved in recompense for trespassing and criminal damage.
Any advice I give is given based on personal experience and/or useful bits and bobs i've picked up over the years. Always seek professional advice if there's any doubt. Need a complaint letter writing, but don't know how to word it?
Then ask me!, I love writing complaint letters, because I can be just as pompous and arrogant as they can, only better!.
It would be relevant to know exactly what your contract says re remuneration, but it is clear that pay should not be cut unilaterally.
The only defence the employer would have (in the absence of a collective agreement or express term - which i doubt would exist re cutting pay), would be a compelling business reason for the change.
Thus if they did enforce the change relevant points would be:
a) The reason for the change
b) Has there been any consultation
c) What exactly the contract says re pay and whether this can be amended
d) Are there any collective agreements
Ultimately if you feel an employer is in serious breach of contract you will be faced with the options of working and saying nothing, or raising a grievance and if still not happy resigning and going for a constructive dismissal claim.
The latter being an option you should seek expert advice on before undertaking.
Che
NB I suppose also you could also explore the argument that this is potentially an unlawful deduction from wages
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Please post on a thread before sending a PM. My opinion's are not expressed as agent or representative of The Consumer Action Group. Always seek professional advice from a qualified legal adviser before acting. If I have helped you please feel free to click on the black star.
I am sorry that work means I don't get into the Employment Forum as often as I would like these days, but nonetheless I'll try to pop in when I can.
We had a meeting today and the company has said that this is a result of uncertain tradeing conditions,they say they are not making any money and if we dont except this then their will be redundancys (this is rubbish because this is the best year yet, up from 22mill to 28 and lots of property and machine purchases, and this is the standard line we get each year for not getting a pay rise) We all feel that the company is using this so they can cut our pay.
Looking at it from a slightly different angle, is it better to accept a 10% pay cut rather than have redundancies?
Leaving aside whether they should have consulted more, I know which I'd go for if the company needs to cut costs. I'd try and negotiate that this was a temporary reduction to help the company through a bad period rather than a permanent cut in wages though.
At the very least the company should put something in writing to you all stating the reasons for the change in contract and the duration for which it is expected to last, as by not doing this any reduction in wages would be classed as an unlawful deduction.
ok, so if they dont reduce wages they say they may have to make redundancies, so it could be the lesser of two evils, but there should be some kind of written guarantee that states that once the company gets back on its feet then full wages will be reinstated.
Of course if the wage reduction leaves you unable to live, then maybe its time to think about moving on?
DCAs:-
NDR, C.A.R.S, NCO, Moorcroft...Sent packing Other:-
Orange:- Account closed, debt written off, refund made.
Books Direct (BCA):- Fraudulent account closed, Cease and desist order issued.
Local Council:- £65 compensation recieved in recompense for trespassing and criminal damage.
Any advice I give is given based on personal experience and/or useful bits and bobs i've picked up over the years. Always seek professional advice if there's any doubt. Need a complaint letter writing, but don't know how to word it?
Then ask me!, I love writing complaint letters, because I can be just as pompous and arrogant as they can, only better!.
Hi, thanks for the prompt replies.
The problem is that the company is very strong,as stated this is the best year yet but they are jumping on the "economic climate" to reduce our pay, we have had a collective letter outlining whats going to happen, but nothing personal yet.
The first question you need to ask yourself is, do I want to continue working at a place like this? If your employers have not discussed the new compensation situation with you, red flags should be going up. This is not a good place to work. The right thing for a company to do would be to sit you down and explain the difficult outlook for the company. The company should try to work out an arrangement that is not too painful for both parties. On the other hand, a cut in salary is never anything but painful, and you have to decide whether working at this company is worth it.
This decision is particularly important because there really is not a lot you can do to stop the pay cut unless you are under contract. If your employment is based on a signed legal contract between you and the employer that clearly states terms of compensation, and it also states that the employer is not allowed to alter the terms without your consent, you would have very solid legal ground to stand on in refusing to agree to the cut. However, most employees work under an "at will" situation, which means that both company and worker can terminate employment at any time.
Depending on where you live, in the case of "at will" employment, the company can lower a worker's pay at any time without having to obtain written consent. All the company needs to do is reissue an offer letter with the revised compensation terms and present it to the employee. If the worker refuses the new offer, employment is essentially terminated.
In this particular case, you have to wonder if your employer has made this pay cut in order to get you to quit. Unfortunately, there is not a lot you can do.
Lived through bankruptcy to tell the tale! Worked in various industries and studied law at university. All advice is given in good faith only
I have a similar situation. The CEO spoke to all those in the office last week (5th Feb), we have many off site workers as well as many who spend time on client sites, as I was doing that day. The announcement was of redundancies and for the remaining staff a 5% pay cut and the removal of the 5% employer pension contribution. We were told these deductions would be in our next pay i.e the end of Feb so this means it would be effective from the 1st Feb so in fact retrospective.
We all have employment contracts.
For those of site that day we have reeived no official communication via email or any other format i.e we only have it word of mouth.
Is this actually legal - do we require any written notice and can the deduction be made retrospectively?
If you belong to a Union, I would get onto the Union or join a union sharpish. I belong to the GMB and they recovered money for me to the tune of nearly £700 in a "unpaid" bonus. They also had a solicitor act on behalf of my wife on a another matter and we got a pay ou of over £1000 compensation plus my wife had some lost holidays re-instated.
10% pay cut same hours
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