"Take 15% salary cut or you are likely to lose your job!"

DUS

Hi,

I am currently facing the awkward situation that I will be forced to accept a 15% cut in my salary, as my non-UK employer said they can no longer afford my salary.

So the situation is that if I decline and insist on them paying the contractually agreed salary, they are likely to sack me before the end of this month. "Luckily" I am on 3 months notice, mind you, 3 months in today´s economic climate is not a very long period of time. That´s why I tend to accept the cut and start searching for another job somewhere else. So far, so good.

But what I would really like to understand is the legal situation IF I declined their request and insisted on my 100% salary. If they made my position redundant then, would I have any legal case against the employer? I am not English, so I am not very familiar with UK labour laws. I´ve read something about "unfair dismissal" etc. but what constitutes an "unfair dismissal" seems to be based on a case-by-case analysis. But generally speaking, if I don´t come to an agreement with them, any chance for me to appeal against the redundancy with a realistic chance of success?

Thank you and have a great w/end,
DUS

BargainGalore

Ask Acas they give advice on these matters

http://www.acas.org.uk/

Looking at another of your posst now I am unsure as they not based in UK

"I am living in the UK and I am employed by an Austrian company. Since I am the only employee in the UK, the company has no legal entity and no office in the UK. So I am working from home."

DUS

Thanks, BG!

Yes, the situation that the employer is not a UK company with no legal entity over here, certainly adds some "spice" to the whole affair.

DUS

dave4545454

DUS wrote: »

Hi,

I am currently facing the awkward situation that I will be forced to accept a 15% cut in my salary, as my non-UK employer said they can no longer afford my salary.

So the situation is that if I decline and insist on them paying the contractually agreed salary, they are likely to sack me before the end of this month. "Luckily" I am on 3 months notice, mind you, 3 months in today´s economic climate is not a very long period of time. That´s why I tend to accept the cut and start searching for another job somewhere else. So far, so good.

But what I would really like to understand is the legal situation IF I declined their request and insisted on my 100% salary. If they made my position redundant then, would I have any legal case against the employer? I am not English, so I am not very familiar with UK labour laws. I´ve read something about "unfair dismissal" etc. but what constitutes an "unfair dismissal" seems to be based on a case-by-case analysis. But generally speaking, if I don´t come to an agreement with them, any chance for me to appeal against the redundancy with a realistic chance of success?

Thank you and have a great w/end,
DUS

make sure the 15% cut doesn't put you under national mininum wage. if it does then what the company is doing is illegal

DUS

dave4545454 wrote: »

make sure the 15% cut doesn't put you under national mininum wage. if it does then what the company is doing is illegal

Yep! Fortunately, I´d be still way above that level. But thanks for pointing this out!!

fozzeh

I had a friend in a similar circumstance (was work 5 days for 4 days pay, UK based company) and there wasn't much he could do about it unfortunately. Not sure where you'd stand with non-domestic based ownership.

teabelly

I strongly suspect that even if you accept the lower salary they'll make you redundant anyway. Unless you're on megabucks 15% reduction can't be more than a few grand a year. If a few hundred quid a month is going to push them into cash flow problems with your job then they must be up a creak anyway. Be careful they don't try and sneak a new contract onto you if you do agree to the pay cut.

HardCoreProgrammer

Be aware that if you accept the 15% pay cut and are subsequently made redundant, your redundancy package (3 months notice period according to you) can be reduced by 15% - if your employer offers terms above the statutory minimum (i.e. 380 pounds per week) and if they have the money to pay you.

If your employer goes bust then you have to claim from the Department for Employment and Learning and the payment is restricted to the statutory minimum.