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Guest danzer72

Can an employer cut wages but still expect to work same hours? - ** RESOLVED **

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Guest danzer72

Advice desperately needed as on Friday my husbands employer has stated that he is no longer going to pay him the rate he has been paid for the past year and is dropping it down to just 50.00 per day .

 

He works as a part time garage door fitter and has a contract with his employer to work two days a week . He started 4 years ago and has had pay rises since then and the pay for the last year has been 80,00 per day.

 

The rest of the week my husband was employed on on a self employed basis and would submit an invoice for any repairs and extra fitting that be may be booked for on other days of the week .

 

but since the recession he was not getting enough self employed work to cover our bills so last year he set up as a maintenance man and has slowly but surly increased his customer base .

 

Since he was getting such a low rate just 10.00 pounds for a repair that could be take two hours and as he uses his own vehicle and tools the repairs were just not economically viable as he was losing work from his maintenance customers.

 

So last week he told his employer that he could no longer do the repairs based on the 10.00 per repair .

 

Yesterday his employer stated that as my husband was not prepared to do the repairs , please remember this is the self employed part of the week and many weeks there was no repairs to do!, he is only going to pay him 50.00 per day for the two days he is employed for instead of 80.00 that he has been getting for the last year.

 

Tax and NI have been paid by his employer based on the 80.00 so basically I'm asking can he do this?

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Whilst it is true that there is a contractual obligation involved over the amount paid to your husband, the sad fact is that the employer can break this arrangement either by agreement, or ultimately by terminating the contract and offering re-employment on the new rate.

 

If the employer simply starts paying the new rate, and it has not been agreed, then there may well be a claim that this represents an unlawful deduction, which can be pursued through an Employment Tribunal. If however the employer were to give notice and terminate the existing contract, offering also re-engagement at the new rate, then this becomes much more difficult. If re-engagement were not offered, then there would be an unfair dismissal, if re-engagement were offered and your husband refused it, then your husband would be looking at constructive dismissal, however whilst that claim might well succeed, the employer has mitigated any possible damages by offering re-engagement, and any award would be extremely small - based as it would be on the difference of £30 a day that was in dispute. Depending on any contractual agreements the employer might also be able to argue that in not fulfilling the self employed part of the job, that your husband is frustrating the 'employed' part of the arrangement.

 

Probably needs a good deal of thought about how much he potentially stands to lose overall if the employer were to dispense with his services altogether, and how easy it might be to gain employment elsewhere.


Any advice given is done so on the assumption that recipients will also take professional advice where appropriate.

 

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He works as a part time garage door fitter and has a contract with his employer to work two days a week .

[...]

The rest of the week my husband was employed on on a self employed basis and would submit an invoice for any repairs and extra fitting that be may be booked for on other days of the week .

 

I am not sure how the law stands on this issue. Surely the HMRC could view this as disguised employment with the intention to avoid tax. If this ever went to an ET both parties could risk to be reported for tax fraud.


"Ask not what your country can do for you, ask what you can do for Poundland"

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Guest danzer72

Thanks for the advice, I have shown my husband and he is grateful that we have your advice and decided to resign.

 

Up date. As of today the employer has changed the game and has made my husband redundant.

 

He had offered one week for every year at yes 80.00 per day!!

 

He also wants to deduct form the redundancy money the cost including the VAT for spares my husband had in his vehicle when it was stolen last year.

 

He has deducted this amount from the redundancy money. Can he do this?

 

As the vehicle was insured for private use as this was before my husband went self employed and the employer was fully aware of this. My husband lost a great deal of tools that were passed down from his father and we could not claim for these either.

This was over a year ago and we informed the employer that we could not claim for these spares and that he should claim on his business insurance we even gave him the Police CAD number.

 

 

We really appreciate the help we have got on here

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He also wants to deduct form the redundancy money the cost including the VAT for spares my husband had in his vehicle when it was stolen last year.

 

He has deducted this amount from the redundancy money. Can he do this?

 

As the vehicle was insured for private use as this was before my husband went self employed and the employer was fully aware of this. My husband lost a great deal of tools that were passed down from his father and we could not claim for these either.

This was over a year ago and we informed the employer that we could not claim for these spares and that he should claim on his business insurance we even gave him the Police CAD number.

 

 

We really appreciate the help we have got on here

 

The employer can only deduct it if there is a clause in the contract which permits it - this must be a written term and the employer must be able to produce either a signed contract containing the clause or a employee handbook which forms part of the contract of employment.In the absence of such a clause there is a more than even chance that this would be an unlawful deduction.


Any advice given is done so on the assumption that recipients will also take professional advice where appropriate.

 

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Guest danzer72

Thanks Sidewinder,

 

There is nothing in the contract stating that goods lost must be reimbursed at the termination of employment.

No handbook existes

My husband, however, two years ago was presented by his employer with a list of spares that my husband carried in his own vehicle .

This equipment has been used in jobs that my husband did with the employer, many of the items where not replaced, other parts where replaced regularly but no annual inventory done and no serial number or id of the items listed.

The list the employer has presented also includes VAT which he has already claimed the vat back on these products and he is expecting to deduct the full amount from the very small redundancy amount.

 

Do you know what part of the employment law would maybe cover this?

 

We would like to accept the redundancy and move on asap but do not accept liability for the lost of the spare parts as they where taken when a crime was committed and we have given him the CAD number.

 

He is just trying to give my husband the very minimum for the redundancy.

We are talking £720. redundancy money with the deduction of the lost equipment of £330 inc VAT. so you can see it quite a lot , well it is to us.

 

I would have thought that the employer should go to small claims court if he feels he has a case?

Any advice is gratefully received and actioned upon.

 

Thanks

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Guest danzer72

Husband has agreed to redundacy and has written a letter re unlawful deductions.................. he gave it to the employer on thursday .........will update Cag ............ you guys have been a great help.

 

 

Cheers

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Guest danzer72

Husband has received his full redundancy money , it not much but it helps. We have put a small donation as a thank you for helping us with this matter. Cheers J and M

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Husband has received his full redundancy money , it not much but it helps. We have put a small donation as a thank you for helping us with this matter. Cheers J and M

 

That's good to hear. Thank you for telling us and thank you very much for the donation to keep CAG going. :)

 

Would you like your thread title amended?

 

My best for the future, HB


Illegitimi non carborundum

 

 

 

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Guest danzer72

yes please what ever you feel is approprate.

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