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New Director, 50% cut monthly income - Expecting the same work- please help


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I need some advice please. My “new” director wants to cut my income about 50% and expect me to do the same job as before.

Maybe I should tell something more. I am doing Billing and for my company is very important to send out all Invoices ASAP so our previous Financial director to speed this process has offered me the bonus so I’ve been working last 3 years every first week on each month from 8 am to 12am in the office, including Saturday and Sunday. Everyone was happy: me because I had paid a good money - Monthly bonus 1,000 – 1,200 each month ( specially that we didn’t have any increases over last 3 years and my salary are like for beginners on Accounts Department £1,600.00 after tax – I am qualified accountant with 13 years experience) and my company because everything was done perfect, correct and quickly. I have finished my Billing always around 3rd – 5th each month, where before , 3 year ago Billing was done in 15 days - 18 days so the different was very visible for everyone. Everything was great, I’ve been working hard doing long hours, slept 4 hours only, Invoices sent early – happy Manager, Directors and owners of the Company until now when we have the new Financial Director.

We had a short meeting where he said 2 weeks ago that can’t be that the bonus is the same big as my monthly salary as usually is only 20% of the income and this must be change compare to the market prices, so he will look again into my contract and will give me the new contract from the 1st of October.

Basically he told me that I am overpaid but Billing he wants me to finish in 5 WORKING DAYS. 5 working days – this is not possible to do in 5 working days between 8.30 and 5.30 (my working hours).

This is unfair!!! Maybe he is thinking to pay me overtime but I don’t want because my salary are really low and my hourly rate is “rubbish”, For this money I prefer spent my evenings at home with my husband.

The month end is coming and I don’t know what to do??? Definitely I won’t stay long hours from now because I was told that from 1 October my Bonus is not exist.

 

Please let me know if I won’t receive anything from 1 of October in writing should I claim my bonus?

 

Should I work long hours?

 

Is it legally to tell me do billing in five working days if this is not possible? Can he cut my monthly income from £2,800 to 1.600 and expect to do the same good work?

 

If I will receive a new contract from the 1st and I won’t be happy – I AM SURE - In this case can I leave the company without any notice period because I am not accepting what they want me to offer?

Really sorry for long letter but I am desperate to have some help

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Hello and welcome to the forum. Please can we slow down a little to let us employment caggers to catch our breath a bit?

 

So you work full time, contracted hours 8.30 to 5.30, is that right? And what do you estimate your total hours per month at please? Sorry if I've missed something.

 

Is this new director right about the sort of salary you should expect for a normal week of 35-40 hours, would you say?

 

My initial reaction is that he's trying to impose a contract change on you without due consultation and as you say, constructive dismissal is a possible scenario. But could we ask you some more questions and have a little think rather than rushing headlong into something? I know you're upset and we'll help as much as we can.

 

In the meantime, have you looked at the directgov and ACAS websites about contract changes? ACAS also have a confidential helpline that you might like to speak to, number on their website.

 

My best, HB

Edited by honeybee13
typo

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Hi Honeybee13,

My normal working hours are 8.30 to 5.30 from Monday to Friday, but just now from last two weeks and I don’t have anything in writing regarding this changes just his word that we can work (all accounts department) 1 hour less because 10 hr/day is a lot, before we did 10 hours/ day from Monday to Friday 8.00 – 6.00 for which I have the contract.

So just to be clear

Now: weekly 45.00 hours plus MY EXTRA between 40 and 50 HOURS (one week long stay plus one Sat and Sun)

Before (last 3 years) 50.00 hours / week plus MY EXTRA between 40 and 50 HOURS (one week long stay plus one Sat and Sun)

I did long hours (EXTRA) because I had the bonus and my company wants to send Invoices ASAP and is only one way to do – doing overtime.

Now my new director doesn’t want me to stay late because he is thinking that I am able to do the same job working only between 8.30 to 5.30, and finish billing as usually –on the 5th what is not possible. Basically he wants the work done and pay only half for this or much, much less.

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Hi wiosna.......... They have a diabolical liberty these employers. Perhaps the company is beginning to see hard times and is trying to cut back their overheads. However 50% cut in income is pretty substanial in anyone's language.

 

I can see how upset you must be. You must plan ahead for a possible dispute and as you say you will just leave that may in these circumstances be actionable in the Employment Tribunal. That is expensive unless you have union backing or private Legal Protection Insurance for employment disputes. I suggest you see if you have this, you can sometimes find them part of home contents insurance. You can also buy them as stand alone policies. Check soon.

 

What I would say is that if you are not happy with this is that you then need to write to your employer asap and explain that you are not happy and that you do not agree with what you were told. If they have not told you in writing that is wrong you have a right to clear terms and conditions in your employment contract. They have the right to change it after consultation but not to do so unilaterally. If they are keeping thing 'verbal' you need to put it in writing and keep copies of all communications.

 

Are you the only person they are doing this to? If you are then that seems wrong too. If not and that it is a company wide thing that strengthen their hand because they are being 'fair' ie it affects everyone.

 

Good employers don't want to lose good staff and will change tactics if they see that their management is counterproductive to the business. That said management also do what they want because they have to prove they are the manager.

 

Is there any hidden agenda eg discrimination of any sort?

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Thanks for replay. This happened for my department only , I mean for me and for my Manager. We are both a good team I should say, but this is not affecting the same Bill’s (my manager) as me as I can imagine that being working for the company more than 10 years and on his age – 52 his salary are probably double or more than my. He is worrying as well but not like me. Working with me and teach me basically everything from beginning was a good for him but probably he didn’t know that I can be better than him. We had both the same bonus every month but I was staying long hours every day, and I was coming on Sat and Sundays to work not like him, having children he couldn’t but he was helping me at anytime when I need but 99% of invoices I am producing myself. Maybe because of age, for me is more easy to use the system, but any way there changes are for both.

The new director probably doesn’t know or doesn’t want to know that before me Bill doing billing finished always around 15 – 18th, but soon he will see and if he wants replace me because I am so “expensive” – no way to do this quickly as any new person will need a minimum two months to know how to doing as every clients, project, director are on different ways to bill, but billing must be done in 5 days maximum - we are a quiet big company in the city and there are some restrictions from Banks.

Discrimination – I don’t know, maybe - I am polish – only one “different” J to others colleagues but I never feel discriminated, we’ve been always a good team like a small family knowing everything about each other. I DONT KNOW THE NEW DIRECTOR – I CANT SAY ANYTHING AT THE MOMENT – but maybe can be discrimination.

But any way I need to know if he will give me a new contract and I won’t be happy can I leave the company without notice period? Maybe there are some legal options that I can do this without any effects??

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Hello again. I think you should be reading up on contracts on the directgov and ACAS websites at this stage. ACAS also have a cionfidential helpline if you want to ring them and talk it through.

 

Walking out is a dangerous strategy because you'd be looking at claming constructive dismissal, which is very hard to prove. Discrimination could make this unfair dismissal if I remember rightly. Walking out could give you some grim satisfaction knowing that you'd landed the new director in it, but could be hard to explain to your next employer.

 

HB

Illegitimi non carborundum

 

 

 

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What others have written is absolutely correct. Your employer is trying to change your contract without negotiation. Where you have been working for a long period and have been earning a certian amount of money, the employer cannot just decide to cut ot back in this way.

 

You need to write a grievance letter complaining about the cut in your money and the fact that you are being expected to take this but still do the same amount of work.

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I would address the grievance to Director of HR who normally have responsibility for such things. You can't go wrong directing it there unless the Director of HR is the one being complained about in which case I would send it straight to the top. In your case as the Director of Finance is being complained about you have to assess the seniority of the various Director roles, ie Finance Director may have an executive function and HR director may just be a title. Might be safer to direct it to the CEO.

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YES, you right - what is the reason to send him the letter if decision has been made already – he decide to cut and why he should change his mind?

Do you know guys if the new contract will be from the 1st of October when should I receive it? I am still waiting, today is 16th and still nothing. Can he give me contract dated 1st of October two days before to sign?

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Have a look first at your Home Contents insurance policy. They are normally attached to those. have a look at the terms of the policy to ensure that it covers employment disputes the nature of which you are in. Also look at the terms that they EXCLUDE. You don't want one that would not cover you.

 

If you don't have one search the internet. There are several providers DAS is a common one but again check the terms conditions and exclusions. They normally cost £20 - £30. If they quote more then you are probably overpaying.

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Hi Guys,

I need advice, I have received offer from my new director, nothing in writing just the conversation and he is offering me £10,000.00/ year less for the same work. I said that I am not accepting this because my work still will be the same, the same long hours as before.

I gave him spreadsheet today showing my all working hours when is the billing time from last 6 months as a example showing every day 15 working hours, including Sat and Sundays and I am waiting what he will say after.

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Hi

 

You indicated in topic name that you have been told of a 50% cut in monthly salary. £10,000 equates to £833pm and 15 hours a day 5 days a week = 75 pw. (without calculating the Sat / Sun hours.) 833 / 75 = £11.10 per hour. Sounds as if you should be looking elsewhere before you burn out.

 

Somehow I think this is not the case, has the numbers changed at all? What percentage decrease does £10,000 equate to?

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SORRY, I wasn’t clear enough, 50% of my monthly bonus, which is part of my Salary, basically in total from 49,000.00/ year to 39,000.00. I know that maybe someone can say is still a lot of money but in practise I will have 900 less every month doing the same job

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20% of your salary seems an awful lot. I agree with you, I wouldn't be happy either. How easy would ie be to get another job? I know this is straightened times but working like a slave 15 hours a day cannot be good for you. Why not just say no and see what he does?

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