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Employer making me take a reduction in pay
dori2o
Posts: 8,150 Forumite
This is a request for a friend of mine.
He is a manager in a shop which has just been taken over by new owners. They have said that they want him to stay in his job, but they are only willing to pay him the minimum wage. Now it is the same shop, same job, same contract as far as he knows but is having to take a reduction in pay of around £1.50 per hour.
Can they do this?
He is a manager in a shop which has just been taken over by new owners. They have said that they want him to stay in his job, but they are only willing to pay him the minimum wage. Now it is the same shop, same job, same contract as far as he knows but is having to take a reduction in pay of around £1.50 per hour.
Can they do this?
[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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What if he has been there less than 2 years, as I understand he is not entitled to redundancy within the first 2 years of employment?[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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Then he should still get his old rate but risks being made redundant with only his notice if he presses the point.
Which is as good as blackmail for him to accept the lower wage, otherwise he'll just be made redundant, and they'll take on someone else who IS willing to work for the lower wage.
That sucks!Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
A reduction in pay is breach of contract. They must keep him on under the same terms as the original contract, end the original contract and start a new one under different terms (which they can only do with his consent), or get rid of him. If he has been there less than one year, they can dismiss him without giving a reason.
If more than one year, they can't dismiss him without giving a reason, and if he hasn't been subject to disciplinary action then the only course of action left to the employer would be to make him redundant. He would not be entitled to statutory redundancy pay if he hasn't been there 2 years. From what I understand an employer cannot make someone redundant and then hire someone else to do the exact same job, so they would not be able to hire someone else to do his job at a lower wage, without offering the job back to him first, under the same terms as the original contract.
I only have a very basic understanding of employment law, so I can't guarantee that all of the above is 100% correct. He should contact Acas (https://www.acas.org.uk) for free advice before doing anything. He should not agree to the reduction in pay without seeking proper legal advice first.0 -
I think it's going to depend at least in part on the conditions of the sale of the shop - whether the owner bought the business as a going concern including the staff or not....0
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