They want to give us all a paycut, and backdate it.

TrickyDicky

So apparently my company is in financial dire straights, and they are asking all staff to take a 3 month 10-20% pay cut depending on your current pay. Plus they want to backdate the pay cut to the beginning of december (they first warned us of this was 4th December).

The question I have is: In my employment contract it says the employer reserves the right to make reasonable changes to the contract from time to time, but any changes will only taken into effect 14 days after they have given written notice. Does the current letter we have count? does this count as a special circumstance? or if they ask us to agree, does it negate anything else that may be in the contract?

I have only been employed here for nearly 12 months.

bap98189

They can ask to backdate it and you can refuse. However, it really doesn't sound like a good position. I would expect redundancy to be right around the corner and would be looking for a new job sharpish.

HalNico

I've not used one but there are several legal advice forums,

freeadvice.com into Google.
I think these would give you a better answer as they are manned by retired and practising solicitors I believe.
Note:Having been around a few years when employers ask employees to take pay cuts it's usually not long before they go under

jacques_chirac

HalNico wrote: »

I've not used one but there are several legal advice forums,

freeadvice.com into Google.
I think these would give you a better answer as they are manned by retired and practising solicitors I believe.
Note:Having been around a few years when employers ask employees to take pay cuts it's usually not long before they go under

I doubt the OP will get many helpful responses on a US website.

PasturesNew

I'd point out to them that as I pay 10% of my pay to get to/from work, that'd have to be the first cutback I made. Then stomp off and buy a paper.

DKLS

What chance is there that the company can turn this around?, how's the order books?, Is jan/feb usually a quiet time for the business?


If the answers to those questions are negative, I would focus your attentions on finding a new job.

getmore4less

Make sure this a temporary change and does not effect notice pay or redundancy.
and annual salaries will be made up when things improve.

Also if the workload has reduced have a reduction in hours/TOIL at quiet times.

Conveniently 12 weeks is the time needed to have the "weeks pay" down to the new level for any payoffs.

time to look for another job.

WestonDave

I'd start looking for another job, but bear in mind that 80-90% of pay for 3 months is better than 0% and that its easier to find a job whilst in a job. With less than 2 years employment history, they could simply say don't bother coming in tomorrow - which is exactly what they will do if you refuse to accept the pay cut. Whilst others with longer history might have some contractual security, it'll count for nothing if that effectively means the company runs out of money in a months time and leaves them all on statutory redundancy payouts.

That said when the crisis hit in 2008, we were all asked to take a 10% cut in pay and hours otherwise the company would have to start reducing staff immediately. Everyone agreed (there were some who had specialised roles who would have been safe to disagree but they'd have to work with the rest of us!) and by 2011 most were back on full pay. (Those that didn't were because they liked the extra half day off per week!).

PasturesNew

WestonDave wrote: »

I'd start looking for another job, but bear in mind that 80-90% of pay for 3 months is better than 0% and that its easier to find a job whilst in a job.

Not true for everybody. The cost of getting to/from work and having your hair done and some work-suitable clothes can be major. For many having the rent and council tax paid by the dole and £71 bunged in your hand every week's not a lot different to working.

Also, being in work gives you less time to look for a new job and less opportunity to attend interviews as it can be impossible to book the time off (especially at short notice).

theoretica

PasturesNew wrote: »

Not true for everybody. The cost of getting to/from work and having your hair done and some work-suitable clothes can be major. For many having the rent and council tax paid by the dole and £71 bunged in your hand every week's not a lot different to working.

But how confident are you that the job centre wouldn't interpret refusing a paycut as interntionally making yourself jobless and apply sanctions?

Personally, I would consider whether I could afford to offer to accept a 10-20% paycut if associated with a 10-20% hours cut. More time to look for another job!

HalNico

jacques_chirac wrote: »

I doubt the OP will get many helpful responses on a US website.

You are correct.I'm not allowed to post full links but this in google should take to a UK based,

findlaw.co.uk