Salary reduced

randomi15

Can an employer reduce your salary with no valid reason?

For isntance if you are earning 40k and it is reduced to 30k what can you do?

k3lvc

randomi15 wrote: »

Can an employer reduce your salary with no valid reason?

For isntance if you are earning 40k and it is reduced to 30k what can you do?

In certain circumstances yes - what's the full story ?

randomi15

Well just curious

xapprenticex

They can basically, providing you are told/given notice etc, always voluntary redundancy

C_Mababejive

Employers can do what they like within limits. Some of them are bullys you know.

randomi15

How though they much provide a reason

For instance if they hire you ok 40k and then drop it down to 20k with no reason i am sure you cau sue them right?

Or even to 35k or whatever number

Is there a guideline to look at

jobbingmusician

Again, not an expert, but my understanding is..

You have a contract. They can't unilaterally change your contract. They can, however..

- say they are going to change it, and require you to accept new T & C or you are redundant (redundancy rights, as with full employment rights, kick in after 2 yrs)

- make a mistake

- demote you as an alternative to dismissal if you are (found) guilty of gross misconduct (I have known this happen when I worked in HR, many yrs ago)

Other posters may have other scenarios.

lincroft1710

Another scenario would be that the employer no longer has sufficient income to pay £40K so salary reduced or employee's services no longer required.

Undervalued

lincroft1710 wrote: »

Another scenario would be that the employer no longer has sufficient income to pay £40K so salary reduced or employee's services no longer required.

Exactly and that is a very difficult situation to argue against.

It is far easier that most people realise for an employer to change the terms of your contract, including your salary. Ultimately, if you can't agree a compromise, they can impose the new terms leaving you with only two options. Accept them (which happens by default) or resign and claim unfair dismissal.

Whether you would win an unfair dismissal claim would depend on whether the change was reasonable. Generally the employer would argue that it was the only viable option apart from redundancy. Very significant changes or reductions in salary have been held to be reasonable.

Even if you win such a claim the tribunal has no power to force your reinstatement on your old terms so, although you would get some compensation, you would still be out of a job.

[Deleted User]

Equally I've just seen the opposite!

6 months pass of company probation brought forward to 3 months (not at employee request)
'Passing of probation' which would otherwise mean nothing - but in this incident increase to salary slightly but ALSO change to notice period (of 3 additional weeks to be served when you thought you have 6 months of 1 week) They also had a signed company contract to work 1 in 4 weekend but that fell by the by and they found themselves working pretty much every weekend.

Under 2 years notice so where do you think they stand!. :cool:

Oh yep there was that company just over a year ago who reduced everybody's hours by 10 though that was only a 2.5k loss on yearly wage - again under 2 year.

Seems signed company contracts aren't worth the paper written on below some magical 24 months.

randomi15

Interesting

So essentially they can't reduce yours with no valid reason to force you to leave?

If they do reduce and you serve notice within first 2 tears so they have to pay you your notice period on reduced salary or old one?