Pay Cut and the legal way to do it?

poshpet

Hi in November at our staff meeting we was warned that we might have to take a 10% pay cut if orders did not improve by the end of December...well they didn't improve so we have now had a pay cut.

My boss did send a letter in an email stating that our HQ has requested this cut and that it would be happening from immediate effect, they contacted the payroll and rush this cut through in a week or so!

The thing is the letter that my boss sent explaining this was NOT signed, I have not said that I agree to this cut and I have NOT signed anything...
Is this legal?

piggeh

Not sure about legalities, but I think if there's a pay cut you should ensure it's time-limited so it doesn't become permanent!

cakey

hi, they can only legally cut your pay, 1) if they get you to agree and sign or 2) if your working hours reflect the cut, i.e 15% time off in compensation for cut

Mudd14

As it is a fundemental chnage in your contract they will need your agreement and give you resonable notice.

The quesion is if ytou oppose the chnage you may end up worse off, ie being in a selection pool of workers considering redundancy or even the option of being dismissed if you do not wish to accept the change.

getmore4less

The employees have ben given over a months notice there would be a 10% pay cut, if no one complained and said NO then maybe they could be deemd to have accepted the new terms.

rupee99

It is a unilateral change to a contract. It is irrelevant that the letter is not signed, but if you continue to work you will have been deemed to have accepted it. If you do not wish to accept it you should lodge a grievance with your employer stating clearly that you do not accept the pay cut.

Practicalities then step in, there could be a whole range of things happen, including you being made redundant or even dismissed. Your rights will vary according to what occurs, but suffice it to say it is likely to become very messy and most unpleasant.

ceridwen

I was also thinking that you need to put in a letter promptly - doing the official grievance procedure.

Unsure on the procedure here - i guess I would personally dib one in straight away saying that you have not and will not agree the paycut and require them to reinstate the agreed paylevel with immediate effect (maybe sending it recorded delivery or something). Hopefully that should "cover you" whilst you seek advice about making sure you do this in an appropriate official way.