Company issuing mandatory pay cuts

carminekitsune

My partner received a letter today that starting from this pay period, employees will have to take a mandatory 10% pay reduction because of the stresses caused by covid 19.

Right now all of them are working from home but they are working full hours. He's on a 6 month rolling contract which has been renewed a couple of times but he's not been there the magic 2 years yet. Part of that time was as a self employed contract worker but he later joined as a PAYE employee. 

I've told him to dig out a copy of his contract to see what the exact wording is, but from what I understand they shouldn't legally be allowed to issue a mandatory cut? Where should we go from here? 

General_Grant

carminekitsune said:

My partner received a letter today that starting from this pay period, employees will have to take a mandatory 10% pay reduction because of the stresses caused by covid 19.

Right now all of them are working from home but they are working full hours. He's on a 6 month rolling contract which has been renewed a couple of times but he's not been there the magic 2 years yet. Part of that time was as a self employed contract worker but he later joined as a PAYE employee. 

I've told him to dig out a copy of his contract to see what the exact wording is, but from what I understand they shouldn't legally be allowed to issue a mandatory cut? Where should we go from here? 

Unless his written particulars of employment say his employment began when he was actually a contractor then reaching the two-year mark is from whenever he really began as an employee.
If he doesn't agree to the pay cut, they could dismiss him with notice and, if they wanted, offer a new contract with the new pay rate.

Dox

carminekitsune said:

My partner received a letter today that starting from this pay period, employees will have to take a mandatory 10% pay reduction because of the stresses caused by covid 19.

Right now all of them are working from home but they are working full hours. He's on a 6 month rolling contract which has been renewed a couple of times but he's not been there the magic 2 years yet. Part of that time was as a self employed contract worker but he later joined as a PAYE employee. 

I've told him to dig out a copy of his contract to see what the exact wording is, but from what I understand they shouldn't legally be allowed to issue a mandatory cut? Where should we go from here? 

Either he agrees to it or his next stop is looking for a new job. Banging on about what companies 'shouldn't legally be allowed to do' won't alter the fact that many have no choice. 90% of pay is better than being furloughed at 80% - or simply dismissed.

carminekitsune

Dox said:

carminekitsune said:

My partner received a letter today that starting from this pay period, employees will have to take a mandatory 10% pay reduction because of the stresses caused by covid 19.

Right now all of them are working from home but they are working full hours. He's on a 6 month rolling contract which has been renewed a couple of times but he's not been there the magic 2 years yet. Part of that time was as a self employed contract worker but he later joined as a PAYE employee. 

I've told him to dig out a copy of his contract to see what the exact wording is, but from what I understand they shouldn't legally be allowed to issue a mandatory cut? Where should we go from here? 

Either he agrees to it or his next stop is looking for a new job. Banging on about what companies 'shouldn't legally be allowed to do' won't alter the fact that many have no choice. 90% of pay is better than being furloughed at 80% - or simply dismissed.

I would actually argue its more important now than ever to hold companies accountable to their legal obligations.

Believe it or not I'm not actually critical of the company for taking the route of paycuts or other actions to survive the short term. What I do take objection to is them making the decision without consulting their employees and applying it retroactively to work they've already done (the letter was only sent today but applies to the pay period starting 1st April)

Given that he's on a short term contract anyway, it looks unlikely that will be renewed if the current situation continues, so being laid off is inevitable. We need to do what we need to survive as much as the company does. 

Dox

carminekitsune said:

Dox said:

carminekitsune said:

My partner received a letter today that starting from this pay period, employees will have to take a mandatory 10% pay reduction because of the stresses caused by covid 19.

Right now all of them are working from home but they are working full hours. He's on a 6 month rolling contract which has been renewed a couple of times but he's not been there the magic 2 years yet. Part of that time was as a self employed contract worker but he later joined as a PAYE employee. 

I've told him to dig out a copy of his contract to see what the exact wording is, but from what I understand they shouldn't legally be allowed to issue a mandatory cut? Where should we go from here? 

Either he agrees to it or his next stop is looking for a new job. Banging on about what companies 'shouldn't legally be allowed to do' won't alter the fact that many have no choice. 90% of pay is better than being furloughed at 80% - or simply dismissed.

I would actually argue its more important now than ever to hold companies accountable to their legal obligations.

Believe it or not I'm not actually critical of the company for taking the route of paycuts or other actions to survive the short term. What I do take objection to is them making the decision without consulting their employees and applying it retroactively to work they've already done (the letter was only sent today but applies to the pay period starting 1st April)

Given that he's on a short term contract anyway, it looks unlikely that will be renewed if the current situation continues, so being laid off is inevitable. We need to do what we need to survive as much as the company does. 

If holding companies to their legal obligations pushes them under, how does that help anyone to 'survive' the current situation? They may simply not have had time to consult before the cash looked likely to run out.

Brynsam

Seems to be yet another case of claiming to recognise all the problems being caused by Covid19, but only if there is no negative impact on me and mine....

Manxman_in_exile

I wonder if the employer finds themselves in this position because they're fulfilling other obligations (like paying refunds on deposits/advance payments etc for services they can no longer provide because of CV) at a time when their income is being drastically reduced.

carminekitsune

Dox said:

carminekitsune said:

Dox said:

carminekitsune said:

My partner received a letter today that starting from this pay period, employees will have to take a mandatory 10% pay reduction because of the stresses caused by covid 19.

Right now all of them are working from home but they are working full hours. He's on a 6 month rolling contract which has been renewed a couple of times but he's not been there the magic 2 years yet. Part of that time was as a self employed contract worker but he later joined as a PAYE employee. 

I've told him to dig out a copy of his contract to see what the exact wording is, but from what I understand they shouldn't legally be allowed to issue a mandatory cut? Where should we go from here? 

Either he agrees to it or his next stop is looking for a new job. Banging on about what companies 'shouldn't legally be allowed to do' won't alter the fact that many have no choice. 90% of pay is better than being furloughed at 80% - or simply dismissed.

I would actually argue its more important now than ever to hold companies accountable to their legal obligations.

Believe it or not I'm not actually critical of the company for taking the route of paycuts or other actions to survive the short term. What I do take objection to is them making the decision without consulting their employees and applying it retroactively to work they've already done (the letter was only sent today but applies to the pay period starting 1st April)

Given that he's on a short term contract anyway, it looks unlikely that will be renewed if the current situation continues, so being laid off is inevitable. We need to do what we need to survive as much as the company does. 

If holding companies to their legal obligations pushes them under, how does that help anyone to 'survive' the current situation? They may simply not have had time to consult before the cash looked likely to run out.

If we say that covid 19 exempts any companies from all their obligations then we are headed down a slippery slope indeed. 
I strongly suspect that discussing it further will make no difference but the company is not so big that a consultation couldn't be done with all its employees in the space of a day. 
But look, all I asked was what would a company's legal obligation be, so I don't know where you seem to get this impression that I hate them, think they are wrong or anything like that? At no point did I criticise them, insult them, or say I wanted them to fail in vengeance or anything like that.  In fact I said 'the company needs to do what it needs to to survive'. But the fact that cuts our income is what worries me, and that would have been the same with or without a global crisis. I don't think it's unreasonable of me to be apprehensive and to seek guidance so I can get a fuller understanding of the picture and how it affects us directly because that, in this moment, is what is making me aprehensive. Of course I know that there is a broader economic picture but that's not what I made this post to debate, and if that's what you're after that's fine. I just don't want to be the one having it with you. I asked a question so that I can make an informed judgement as to what our best move will be and if you're going to think ill of me for doing that then there really isn't anything I can do about that. 

JReacher1

I think you have to accept the pay cut. I don’t know what options you have to protest this paycut. It sounds like it’s pretty much a done deal. 

carminekitsune

JReacher1 said:

I think you have to accept the pay cut. I don’t know what options you have to protest this paycut. It sounds like it’s pretty much a done deal. 

That's pretty much the conclusion I'd reached but I had a vague hope we could fight it somehow, if only for this month so we can use that money to prepare. 

His contract is only due to last for a few more months anyhow, and that was the case long before covid was on the radar. If he stays on 90% for that whole period we'll get by, but I am worried that the cut won't be enough to keep them going and this time next month they will let him go entirely. If that does happen then we will be in trouble. 

Socajam

carminekitsune said:

JReacher1 said:

I think you have to accept the pay cut. I don’t know what options you have to protest this paycut. It sounds like it’s pretty much a done deal. 

That's pretty much the conclusion I'd reached but I had a vague hope we could fight it somehow, if only for this month so we can use that money to prepare. 

His contract is only due to last for a few more months anyhow, and that was the case long before covid was on the radar. If he stays on 90% for that whole period we'll get by, but I am worried that the cut won't be enough to keep them going and this time next month they will let him go entirely. If that does happen then we will be in trouble. 

What is there to fight?
Just thank your lucky stars that he was not just let go.
You have 90% of salary, whilst some people have none.
Hopefully he is not let go next month, because you would be in serious trouble.