Can my employer reduce my wages without reducing my hours worked?

buddyrichman

Top this, my boss suggested a few weeks ago that we take a cut in salary and work 3 weeks in 4. But now, since all the recent news of redundancies and lay-offs etc, he is now suggesting 3 weeks salary for 4 weeks work! I might have just considered the first option if it meant saving the company but it's not like that. He only employs two of us, on modest salaries and the company, though suffering a downturn like a lot of companies, is still very profitable. He has just purchased a £1million house, is having a new kitchen, has built new stables and just booked an expensive holiday for the new year. His comments about not seeing why he should subsidise the business out of his own 'savings' (all built up out of the profits I have earned him in the business!) are nonsense, as the business has enough cash and assets to weather the storm well into the new year and beyond. He is simply trying to make more profit byreducing the wage bill and using the recession as a reason. Not a nice man!

ceridwen

buddyrichman wrote: »

Top this, my boss suggested a few weeks ago that we take a cut in salary and work 3 weeks in 4. But now, since all the recent news of redundancies and lay-offs etc, he is now suggesting 3 weeks salary for 4 weeks work! I might have just considered the first option if it meant saving the company but it's not like that. He only employs two of us, on modest salaries and the company, though suffering a downturn like a lot of companies, is still very profitable. He has just purchased a £1million house, is having a new kitchen, has built new stables and just booked an expensive holiday for the new year. His comments about not seeing why he should subsidise the business out of his own 'savings' (all built up out of the profits I have earned him in the business!) are nonsense, as the business has enough cash and assets to weather the storm well into the new year and beyond. He is simply trying to make more profit byreducing the wage bill and using the recession as a reason. Not a nice man!

Well thats one way to put it - I would have a lot less polite way of putting it.....:cool: Unfortunately...I think it is the case that there will be some firms "trying it on" at reducing their employees' salary - even though there is quite definitely no "business reason" to do so. Some people are just plain greedy - and it sounds like you have one of them for a boss unfortunately.

Good luck in dealing with this.

rudeboy31

I was given written notice on Thursday 11th December that my wages will be cut by 15% as of the 1st January. I work in the construction industry and the letter I was given explained that the reasons for the cut in pay was a big reduction in the contracts being gained. However we are still expected to work 6 day weeks, and the project I have been working on for over a year would have been costed and budgeted a long time ago so my employer will still be receiving the same renumeration from the main contractor. I and many others have been told that we have to accept th offer, and were told to return the original letters we received no later than today, which most of us have done for fear of losing our jobs altogether. Is this legal? It is only the staff on hourly rates which have been affected, those on salary are recieving no pay cut. The company is still throwing a Big Christmas party in an expensive bar for those in the main office! To me it seems to be an underhand way of forcing many people out of the company!!!

ceridwen

rudeboy31 wrote: »

I was given written notice on Thursday 11th December that my wages will be cut by 15% as of the 1st January. I work in the construction industry and the letter I was given explained that the reasons for the cut in pay was a big reduction in the contracts being gained. However we are still expected to work 6 day weeks, and the project I have been working on for over a year would have been costed and budgeted a long time ago so my employer will still be receiving the same renumeration from the main contractor. I and many others have been told that we have to accept th offer, and were told to return the original letters we received no later than today, which most of us have done for fear of losing our jobs altogether. Is this legal? It is only the staff on hourly rates which have been affected, those on salary are recieving no pay cut. The company is still throwing a Big Christmas party in an expensive bar for those in the main office! To me it seems to be an underhand way of forcing many people out of the company!!!

I expect someone will come along soon to help on the legalities of this. The phrase "under duress" is coming to mind here though...as in you all signed "under duress" - rather than of your own free will - ie signed not because you agreed to this, but because you were pressurised/felt scared.

I think you had better find out the procedure for bringing a grievance. Again - I guess someone will come along in a moment who can help with that.

Good luck.

lizdean

my daughter is 19 and is working on her nvq level 3. she is training to be a nursery nurse and has worked at the same nursery since leaving school. she statred out receiving ema at 30.00 per week while doing nvq level 2. once this was passed she started receiving a training wage of approx 90.00 per week when she started doing her nvq level 3. when she reached 19, in december, her tutor said she must now be paid the national minimum wage for a 19 year old. today she was told by her employer that they may have to 'let her go', as they cannot afford to pay her. are they within their rights to do this?? the poor lass has for nearly 3 years worked full time, studying one day per week for a pittance and now her employer has to pay her the going rate, they are basically sacking her HELP please.

steve172

Hi,

My employer has informed me that he is going to cut my hours per month from July 1st 2010. I am going to be cut up to 60-80 hours per month.

I am a care worker. They have informed us all that they are going to cut hour hours down to 37,5 hours per week and bring in agency staff and pay them double, I feel that this is wrong morally and also the staff they will be brought in wont also be qualified to our standard, but is this legal that they can do this

getmore4less

join the agency they will be using and do extra time with them.

SarEl

orlao wrote: »

As long as your contract states your salary and normal working week (as it should) they cannot force you to take the pay cut.....as you have to agree to a variation of contract.

Sorry but this isn't entirely an accurate statement in law. An employer wishing to vary a contract must serve notice of the change and if an employee objects then they must either accept that OR they may serve notice on the employee and terminate their excisting contract, offering them the new contract to run from the date of termination with all employment rights intact (in other words, just the imposed change). If they do this is is not a redundancy, and it MAY be a fair dismissal. The problem is that the only way to test whether it is fair is at tribunal - there is no legal gudiance to say when it is an when it isn't.

Over the last 12 - 18 months tribunals have been ruling as fair dismissals employees facing significant cuts in salary of this type - but there are some pointers as to when they would consider it unfair. If it is being done as a response to the economic situation it should be temporary, subject to review, and the only alternative to making staff redundant. I'm sorry I can't be clearer on this point, but this is one of the areas of employment law which is somewhat akin to alchemy - there are no absolutes and a tribunal could go one way or the other.

Foxy-Stoat_3

Sorry for bumping an old thread but am facing redundancy in 2 days ---- GULP !!!!

Short story so far:
Started work 03.12.07 in a construction company, 1 day a week at college doing a HNC.
Pay cut was given to everyone 01.12.08 by letter, no reduction hours, take it or leave it. Didnt have to sign anything, just a 10% pay cut from our salaries.
1 month later the current owner was going to wind up the business, but was bought out by managers already employed with the company.
01.02.08 I was told that I would have to take a further 10% off my salary because I was doing 1 day a week at college, I usually worked late and some weekends because of work loads. I agreed after consulting with ACAS as they can do what ever they liked if I acepted unless I went for constructive dismissal. Didnt want to go down constructive dismissal route as I thought the money would go back up after college and there wasnt anything else on the market.
01.07.10 I finished my college course and went back to 5 days a week. Didnt ask for more money as I thought they would come to me....WRONG !
25.10.10 I get pulled in saying they may have to make me redundant as my position will disappear. Havent offered me another job in the business. Reading between the lines, I am the least qualified out of all the other people. in the office and they want to save money.

Company is doing well and have secured 75% of next years turnover already, everyone is VERY busy and being worked like a dog.

Question 1, was it legal and fair for our salary to be cut by 10% nearly 2 years ago and do I have grounds to ask for the money back as in my contract it states the company reduce either pay or hours for a LIMITED time. Going on the time frame and change of owners, is there any mileage in bringing this up?

Question 2, can I reasonably ask for my back pay when I went back to 5 days a week?

Question 3, should I be talking to ACAS as CAB wasnt very knowledgable after I asked them after the second pay cut.

Not really wanting to take them to a tribunal as just want to find another job and go with my life.

Sorry for the long post and thanks for reading.

diable

I wonder what would happen if the employees said to the employer "wow you are making !!!!!! loads of money and we have decided that you need to pay us 20% more"?