Wage Cut

bartman612

i am trying to think of ways to keep my firm going before we decide to go into liquidation.We are in unprecedented times and our company doesn't qualify for any support.Can I ask employees to take a wage cut to protect their jobs.

sharpe106

You can ask, as long as it does not take them under NMW. They either agree or do not. Can you not make the hard decision of making some redundant to save the company? Not nice but sometimes has to be done. After all if the company goes everybody loses their job rather then a few. 

bartman612

sharpe106 said:

You can ask, as long as it does not take them under NMW. They either agree or do not. Can you not make the hard decision of making some redundant to save the company? Not nice but sometimes has to be done. After all if the company goes everybody loses their job rather then a few. 

They would be well above the NMW.Who pays the redundancy if there is no money in the bank.They all have different skills that contribute to varying jobs.

sharpe106

Surely you can furlough them for the short term?

bartman612

sharpe106 said:

Surely you can furlough them for the short term?

They are,which we are financing but I think this down turn will be the worst ive seen and We need to prepare for when the furlough period is over.

Thrugelmir

You can propose any pay scheme you like to your employees. Bottom line is that they may prefer some income to none at all. In the past schemes I've been involved in. Also have longer term positive rewards for employees to offset the short term lack of income. Getting absoloutely everyone to buy into the survival plan is critical.