Issues at work re salary

Options
Hello

I would welcome any advice on my situation

I started a new job in February last year for a company which is an incubator company sitting within the parent company.

The business hasn't generated the forecasted income and business the directors and investors thought it would and the incubator company is now on the verge of collapse


In February this year I was presented with either taking a temporary £10k per year paycut (with the outstanding pay to be paid back to me once the business was generating income) or unemployment. I took the paycut. The business is still not generating much income, and I am not able to do the role I was employed to do simply because there isn't the work coming in. Instead I spend my working days trying to find things to do (write blogs, social media marketing, SEO tweeks etc) just to try to fill my days. I am bored beyond belief.

Yesterday I was called into a one to one meeting with the director and was told that my temporary paycut was now permanent and that he wasn't prepared to be legally liable for any further debt from that day onwards. He set out what debts the company has (other then the debt owed to me,. The other debts are down to the directors decisions alone). He also told me that if I requested the debt owed to me it would bankrupt the company. I'm very angry he has placed that on my shoulders and cut my contracted salary without discussion or prior notice. My job remains far from secure and I am concerned that one day I will be told that I'm out of a job with no notice period and no chance of ever seeing my back pay. I also feel that he is engineering a constructive dismissal.

The total back pay owed is £8,333 (before tax and NI). I would happily take £5k in cash on Monday and leave that day.

Any thoughts would be welcome.

Thank you.
«13

Comments

  • moneyistooshorttomention
    Options
    Don't resign - it's probably what he wants you to do.

    If you resign - then the DWP won't give you benefits for some weeks.

    Stay in the job (what there is of it) and use that spare time to look for another job.

    Once you are safely in another job (hopefully) then see if you can get the money owed you from this company.
  • Gavin83
    Gavin83 Posts: 8,756 Forumite
    Name Dropper First Post First Anniversary
    Options
    Rubik wrote: »
    Hello

    I would welcome any advice on my situation

    I started a new job in February last year for a company which is an incubator company sitting within the parent company.

    The business hasn't generated the forecasted income and business the directors and investors thought it would and the incubator company is now on the verge of collapse


    In February this year I was presented with either taking a temporary £10k per year paycut (with the outstanding pay to be paid back to me once the business was generating income) or unemployment. I took the paycut. The business is still not generating much income, and I am not able to do the role I was employed to do simply because there isn't the work coming in. Instead I spend my working days trying to find things to do (write blogs, social media marketing, SEO tweeks etc) just to try to fill my days. I am bored beyond belief.

    Yesterday I was called into a one to one meeting with the director and was told that my temporary paycut was now permanent and that he wasn't prepared to be legally liable for any further debt from that day onwards. He set out what debts the company has (other then the debt owed to me,. The other debts are down to the directors decisions alone). He also told me that if I requested the debt owed to me it would bankrupt the company. I'm very angry he has placed that on my shoulders and cut my contracted salary without discussion or prior notice. My job remains far from secure and I am concerned that one day I will be told that I'm out of a job with no notice period and no chance of ever seeing my back pay. I also feel that he is engineering a constructive dismissal.

    The total back pay owed is £8,333 (before tax and NI). I would happily take £5k in cash on Monday and leave that day.

    Any thoughts would be welcome.

    Thank you.

    What was the exact wording of the agreement? If the agreement was (as it sounds) that they'll pay you back once profitable, if they're never profitable then they'll owe you nothing. In all honesty it sounds like this company will soon fold. I assume you've already been looking for another job? If not start to do so straight away.
  • Rubik
    Rubik Posts: 315 Forumite
    Rampant Recycler
    Options
    Gavin83 wrote: »
    What was the exact wording of the agreement? If the agreement was (as it sounds) that they'll pay you back once profitable, if they're never profitable then they'll owe you nothing. In all honesty it sounds like this company will soon fold. I assume you've already been looking for another job? If not start to do so straight away.

    There is no written agreement, simply a verbal one. What is do have is my contract stating my salary and payslips showing what I've actually been paid.
  • thorsoak
    thorsoak Posts: 7,166 Forumite
    Name Dropper First Post First Anniversary
    Options
    Before deciding upon anything else, I would be checking with HMRC to ensure that both the tax and NI contributions (from you and the company) have been paid.

    I take it that you are not in a Union?
  • Rubik
    Rubik Posts: 315 Forumite
    Rampant Recycler
    Options
    thorsoak wrote: »
    Before deciding upon anything else, I would be checking with HMRC to ensure that both the tax and NI contributions (from you and the company) have been paid.

    I take it that you are not in a Union?

    Thanks, no issues with the tax and NI being paid to HMRC.

    And no, I'm not in a union - can't afford the membership fees.
  • Pollycat
    Pollycat Posts: 34,767 Forumite
    Name Dropper First Anniversary First Post Savvy Shopper!
    Options
    Rubik
    I wonder if you'd be better posting on the employment board...
  • thorsoak
    thorsoak Posts: 7,166 Forumite
    Name Dropper First Post First Anniversary
    Options
    Rubik wrote: »
    Thanks, no issues with the tax and NI being paid to HMRC.

    And no, I'm not in a union - can't afford the membership fees.

    When dealing with a company like this - can you afford not to be in a Union? Hope you manage to sort things out.
  • Pollycat
    Pollycat Posts: 34,767 Forumite
    Name Dropper First Anniversary First Post Savvy Shopper!
    Options
    thorsoak wrote: »
    When dealing with a company like this - can you afford not to be in a Union? Hope you manage to sort things out.

    Me too.
    It sounds like the OP has been treated pretty shabbily by this company.
  • Rubik
    Rubik Posts: 315 Forumite
    Rampant Recycler
    Options
    thorsoak wrote: »
    When dealing with a company like this - can you afford not to be in a Union? Hope you manage to sort things out.

    Thanks thorsoak. Unions won't deal with a issue that started prior to a member joining (as a general rule).
  • Rubik
    Rubik Posts: 315 Forumite
    Rampant Recycler
    Options
    Pollycat wrote: »
    Rubik
    I wonder if you'd be better posting on the employment board...

    Pollycat, the only employment board I could find was one that very old posts on it and is part of the old CAB forums. Perhaps I'm not looking in the right place.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.8K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 235.9K Work, Benefits & Business
  • 609.1K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards