Pay deduction & New contract of employment

rajivjeebun

Hello

My friend has been in employment for more than 1 year with a company. Now his employer is telling him that he is going to reduce his pay and that he is going to put him on a new contract for a period of 3 months and after those 3 months he will review his situation. Legally, does he has a right to do so??

I would like some advice on the above subject.

Many thanks.

dmg24

Not nearly enough information to give an informed response - what is the difference between the new and old contracts? Are there any variation clauses in his old contract?

rajivjeebun

The old contract clearly stipulated that he would be paid £8 p/h and that he is only a part-time worker on a permanent basis. Under the new contract, the employer has stipulated that the pay rate will be from now on £7.30 p/h and that it will be a short term contract for 3 months and after the 3 months the employer will review the employee's situation. What will happen if the employee doesnt agree with the new conditions in the new contract. No notice was given about the change in the new contract and apparently it will be effective as from 1st of June which is tomorrow and the employee has only been informed today.

many thanks.

zzzLazyDaisy

His main problem is that if he continues to work under the new contract, he will be deemed to have accepted it by his conduct.

Realistically he has few options....

He should at least start a grievance and have his concerns documented.

If that doesn't resolve the issue (which tbh is unlikely) he should write to his employer stating clearly that he does not accept the wage cut and that he is working under protest as far as that clause is concerned.

If he is determined not to accept the new contract, his only avenue of redress is to resign and claim constructive dismissal, but he would first have to go through the grievance procedure. However there is no guarantee that he would win his case and in the meantime he would have lost his job (and probably incur benefit sanctions)

If he continues to work for them but invokes the grievance procedure and/or informs the employer that he is working under protest, he may find that the employer takes against him and looks for some way to get rid of him.

Sorry to be so unhelpful - the problem is of course that we are in an economic downturn, employers are struggling, and people are being made redundant.

There is one positive note, though - the employer cannot take away his legal protection against unfair dismissal - he has more than 12 months service, and the employer can't change that by giving him a 'temporary contract'. So as far as reviewing the situation in three months is concerned - if the employer terminates the contract without following fair procedures, or without a fair reason, then he will have a claim for unfair dismissal.

He might want to phone ACAS, they give free impartial information about employment rights and will be able to talk him through his own particular situation.

Good luck!

Daisy

rajivjeebun

Thanks ever so much for your advice.

I really appreciate it.

Many thanks.