Told to take 20% pay cut but still doing same hours/job

threeseashells

Hi,

My company is sending some staff home on furlough with 80% salary, but some are still working usual hours doing the same workload as always but being told to take a 20% pay cut. If the latter don't take the pay cut the threat of redundancy is mentioned, despite the role not being at risk of redundancy. Is this right the company are doing this? 

TIA

Illusionary

I'd question why you think that the role isn't at risk of redundancy - surely if the business is continuing to operate only with lower staff numbers, that implies that the pre-existing staffing numbers aren't sustainable?

The reduction in income can't be unilaterally imposed by the employer, but the potential for redundancy may be very real. Do you know the criteria being used to select employees for furlough?

7Phil

They are not right in doing that.
If you are working as normal and even picking up slack from others being laid off then you expect fair treatment.
You should not accept a 20% pay cut for normal work.

threeseashells

@Illusionary, the company services multiple contracts. Some are suffering reduced revenue, mine isn't.

Galloglass

You should not accept a 20% pay cut for normal work.

If TSS wants to stick to the contract, his employer will either have to pay or make TSS redundant since the contract is being broken. You can work out how much here

https://www.gov.uk/calculate-your-redundancy-pay

threeseashells

Galloglass said:

You should not accept a 20% pay cut for normal work.

If TSS wants to stick to the contract, his employer will either have to pay or make TSS redundant since the contract is being broken. You can work out how much here

@Galloglass: Thanks for the response. How could an employee be made redundant when the contract and role is still live?

SuperWizard

@threeseashells The employee could be surplus to requirements; it may be possible to service the contract with a reduced number of staff in that position. They will have to select the employee(s) for redundancy fairly, of course, but it is still possible.

Galloglass

They will have to select the employee(s) for redundancy fairly, of course, but it is still possible.

The employee could resign and claim redundancy after 4 weeks. Employment is just another form of contract - contracts get "frustrated" by events. In this case, contracts with the employer are being broken due to circumstances beyond control (called "frustrated) but it does not mean you are obliged to accept the new terms. You can leave or be asked to leave. 

See Applying for Redundancy

https://www.gov.uk/lay-offs-short-timeworking/applying-for-redundancy-