How much of a pay-cut is acceptable?

COOLTRIKERCHICK

last year, a certain part of my business was stagnant, and left me with a cashflow problem.

I had someone who was working for me on a pretty good wage, i had a caht with him, and give him 3 options, a pay cut, a reduction in hours or lay off.

he took the latter, now i have re-structured the business, so this would not happen again, i have re-employed him...

my advice would be, is be honest and truthfull with them, about the situation, and see if you can come to an agreement with a reduction in wages that you both agree on, if not tell them, there could be a possiblities of hours being cut or even a lay-off. Staff are not stupid when it comes to picking up on how the business is doing,

heretolearn_2

I'd talk to ACAS before doing anything as this is a difficult area. They give free advice to employers as well as employees - they are totally neutral.

SueC_2

If you are going to reduce his pay it would be worth thinking about anything you could offer in return as a bit of a sweetener.

Additional holiday allowance? Finish early on a Friday every week? Reduced hours?

You'd need to think of something that would work for your business, but he may not feel quite so hard done by if he thinks there is give and take involved and not just give.

mikeopvc

Thanks for the replies guys, I think I should say we have actually come to an agreement, we are both happy with the deal and it's working out well.

Thanks again everyone:beer:

COOLTRIKERCHICK

mikeopvc wrote: »

Thanks for the replies guys, I think I should say we have actually come to an agreement, we are both happy with the deal and it's working out well.

Thanks again everyone:beer:

cool, its allways best to talk and come to a mutual agreement... and stay friends too:T