20% salary cut and not paying car allowance

Popeye84

Hello all,
I have just been informed that my company will be reducing all staff salaries by 20% from the 1st April and will not be paying my car allowance either. Some people are being furloughed with the rest of us having the measures mentioned.
Are they able to do this?

neilmcl

Yes, if they can do this in normal times why do you think they couldn't do this now unfortunately. I guess what they're trying to do is making it fairer on all employees, ie those being furloughed get 80% so the rest do too. You also get a car allowance because it's meant that you use your car for work purposes, if that's being cut down because of non-essential travel then you don't need the allowance.

Luvoj

Popeye84 said:

Hello all,
I have just been informed that my company will be reducing all staff salaries by 20% from the 1st April and will not be paying my car allowance either. Some people are being furloughed with the rest of us having the measures mentioned.
Are they able to do this?

If you allow them, yes.

neilmcl

Luvoj said:

Popeye84 said:

Hello all,
I have just been informed that my company will be reducing all staff salaries by 20% from the 1st April and will not be paying my car allowance either. Some people are being furloughed with the rest of us having the measures mentioned.
Are they able to do this?

If you allow them, yes.

What do you mean "if you allow them". If you, as an employer, wanted to cut the wages of your staff do you think they would have much choice in the matter, other than going to work for someone else.