Can my employer reduce my hours

Hi there, wonder if you can help

I have worked for my employer (This consists of the MD, me and 2 consultants) for just over 7 years.

My MD is a bit niave when it comes to these things, and I know he won't have asked for professional advice, so thought I would try and find out where I stand.

Basically 2 weeks ago he said he would need to cut my hours by 10 a week (25%) to reduce costs which would reduce my annual salary by £4,500. We had another meeting last week, I said I couldn't afford to work on that basis, so he said he would go away and think about it!

I am pretty sure he is going to enforce this on me and I wondered where I stood. Would I be right in thinking that if he does want to go ahead with this, firstly I would have to agree, and if I don't agree, would he be therefore making my current contract redundant (40 hours) and offering a new contract (30 hours) so he would have to make me redundant?

I've heard contrasting things so am really not sure where I stand!

Thanks
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Comments

  • ceridwen
    ceridwen Posts: 11,547
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    The following article will be of interest to you:

    http://www.independent.co.uk/money/invest-save/companies-state-the-stark-choice-sacrifice-salary-or-jobs-will-go-1515004.html

    This gives the legal position - further down in the article.

    My calculations are that your current workweek is 40 hours and they are attempting to cut it to 30 hours - which, by sheer coincidence or otherwise, is the minimum workweek childless people have to work in order to fulfil eligibility criteria for Working Tax Credit.

    I'm not entirely sure how WTC works - think its based on yearly earnings....but you wouldnt by any chance be childless would you? If so - your employer may not be quite as naive as you think.....

    Apparent "naivety" is one of the things that employers sometimes do to achieve the desired objective - its not as common as the "paper tiger" putting on the "frighteners" approach...but it happens.
  • an9i77
    an9i77 Posts: 1,460
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    Hi Solarized

    Yes he can reduce your hours, but he is obliged to consult with you. This means that before he can put this in place he needs to justify the business reasons for what he is doing and show that he has considered your feedback. However in the event that you were to refuse, he could dismiss you (legally this is known as a dismissal for 'some other substantial reason') and re engage you on the new terms and conditions. If you think that the business justifcation he uses is not sound you could in theory take him to a tribunal for unfair dismissal, but if he can show an 'economic, technical or organisational' justifcation (not hard in these troubled times) then the tribunal would be likely to find in his favour. Hope this helps explain the legal position.
  • I called ACAS and i'm even more confused now. According to them he would have to give me 7 weeks notice for each year worked and at the end of that period if I was not to agree he would therefore be making my 40 hour a week contract redundant, so I would therefore be able to take redundancy?

    Is this not correct?
  • ceridwen
    ceridwen Posts: 11,547
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    Well - it was a qualified solicitor that was quoted in the article I gave a link to. I would be inclined to believe a qualified solicitor over what anyone else says myself.....(always worth checking other posts by any poster to look for clues as to what job they do in The Real World - to see if they are a qualified solicitor or similar).

    Perhaps you could get one of those brief freeby legal sessions that are available? Perhaps it could even be worth paying for a brief session with an employment law specialist?

    I can quite see the point re employers being allowed to make changes to one's conditions - BUT I very much doubt they are allowed to make a "substantial" one - and cutting one's workweek is a "substantial" one in anyones book.

    Since ACAS say he would have to make you redundant (ie redundancy payment and the "dismissal" called "redundancy") - rather than sack you - if you dont' agree - then that is the verdict I would go with. A friend of mine who is a former solicitor recommended ACAS as a good source of advice to me - if its good enough for her...then its good enough for me.

    Always be a little cynical about whether employers are telling you the truth - or any poster (who - for all you know - might be an employer themselves). I've certainly had a LOT of experience of employers lying to me - to try and make me believe they could do something they arent actually legally entitled to do.
  • Hi - this link to the BERR (business enterprise and regulatory reform) gives you a redundancy pay calculator

    http://www.berr.gov.uk/whatwedo/employment/employment-legislation/employment-guidance/page33683.html

    HTH?;)
  • mark5
    mark5 Posts: 1,361
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    After a certain amount of weeks on reduced hours your entitled to ask him to make you redundant.

    This entitles you to 1 weeks pay (max approx £320 ish) for each year service redundancy,in your case 7 x320 =£2240 tax free

    Plus 7 weeks paid notice at your usual rate minus tax and NI.
  • I'm in a similar position. My employer wants to reduce my hours in order to create a job for a new employee. Can he do this?
  • BEN6600 wrote: »
    I'm in a similar position. My employer wants to reduce my hours in order to create a job for a new employee. Can he do this?
    Please help - anybody out there?
  • cmn1977
    cmn1977 Posts: 24 Forumite
    Hi, I finally got through to ACAS today, my employer wants to reduce my hours temporarily ( or so she said), ACAS said that if there is a lay-off clause in my contract then they can do this, but as I have no written contract then they can't lay me off for the 2 days a week.

    If they want to change your contract then they have to give notice of the change and I think she said they would dismiss you from your old contract and re-employ you for the new. I hope I got that right, it was such a shock to get through to speak to someone!!

    If I have misunderstood would be grateful for correction!

    C
  • LittleVoice
    LittleVoice Posts: 8,975
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    mark5 wrote: »
    This entitles you to 1 weeks pay (max approx £320 ish) for each year service .

    Just to advise that the maximum is now (effective 1 February) £350/week.
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