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      OT APPROVED, 365MC637, FAROOQ, EVRi, 12.07.23 (BRENT) - J v4.pdf
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Reduction in pay after promotion. (sort of)


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Hi.

 

I'm hoping someone will be able to advise me on this problem, I will try to keep to the point. Thanks.

 

My partner has run a small shop (44 hours a week) which is part of a large chain for the last 9 years. Her title is supervisor although she is in charge of hiring, wages, day to day running etc. they don't have managers in the smaller stores, only supervisors although they do everything a manager would do. She reports directly to her area manager.

 

Her wages are broken down in the following way

 

1) Her standard monthly pay

2) A monthly bonus based on sales

3) A standard staff bonus paid twice a year ( all staff get this which is a percentage of the standard wage)

4) A managers bonus paid twice a year ( because she is running the shop, as a manager would)

 

They have just expanded her shop and have decided they now need a manager, a debuty manager, three supervisors on limited hours, and other staff, they have decided that although she has been in charge for the last 9 years she does not have the experience to be a manager (fair enough) but would like her to be deputy manager. The supervisor position she currently holds will no longer exist on the current hours.

 

As deputy manager she is no longer going to receive:

 

1) The monthly bonus based on sales

2) The twice yearly managers bonus

 

So in effect this is quite a significant pay cut which she/we can ill afford. Are you able to advise on what is allowed or any other advise would be a great help.

 

Thank you for your time.

 

Dan

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Hello and Welcome, Dan.

 

I take it your partner would have been informed they would loose the monthly bonus based on sales and the twice yearly managers bonus during the interveiw process, I would not think there is not a lot she can do as she has accepted the role as it stands.

 

Maybe someone else will have a more hopeful reply.

 

Regards.

 

Scott.

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If you are informed that you will loose these benefits then really there is nothing you can do.

 

I don't understand why they would loose the managers bonus now they are a manager?

I am not a legal professional or adviser, I am however a Law Student and very well versed areas of Employment Law. Anything I write here is purely from my own experiences! If I help, then click the star to add to my reputation :)

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Did she have a written contract in place?

 

If so, this should govern the bonus issue. Without the contract, there's a custom and practice argument which could form the basis of an unlawful deduction from wages claim. With a contract, it may well state the bonus is discretionary, which could mean theres no legal claim.

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Thank you all for your replies.

 

She has not formally accepted the position yet and there was no mention of the bonuses being removed in the formal interview for the job but it had been suggested at another time that this will be the case.

 

My partner still has the original contract dating back to 2003 (she is very organised :))

 

Taking a look a it it does not mention the managers bonus at all but it does mention the monthly bonus (stated as a weekly bonus on the contract)

 

The contract says

 

Rate of pay: £xxx per hour plus a weekly bonus of £xxx

 

Thanks

 

Dan.

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As she has been there for such a long time can she negotiate at all without falling out with her employers, she could say that this will seriously affect her wages and as such prehaps there is another branch that she could transfer to as a supervisor?

She has nothing to lose by asking and she must be quite a valued employee if she has given such good service for so long.

If I have been of any help, please click on my star and let me know, thank you.

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Hi,

 

Having spoken to a family member who is a solicitor (this is not his field though so is not 100% on this) he also suggested the same becky above that because the bonuses have been paid year in and year out without fail that this is a case of custom and practice so are going down that route with a view of any bonuses becoming part of her standard wage.

 

I will update ths thread once we have come to a conclusion as it may help someone in the future. Thanks to everyone

 

Dan

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I would guess at custom and practice, effectively she is being demoted otherwise, which could be grounds for constructive dismissal.

 

But skip the legal perspective and play the bl**ding obvious one that its wrong she should get an effective promotion that lowers her income.

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