Employer trying to cut pay

Sassybot

I’m looking for some advice on disputing an employee trying to cut none existing shift allowance.

My partner has worked for the same manufacturing company for seven years. The company operates with a standard day shift (8-4) and then an early and late shift. Those who do the early and late shift are entitled to a shift allowance of 20% their hourly rate. 18 months ago, my partner took a substantial promotion and moved from early/late shifts to the standard day shift.

When the government announced the lock down, my partner’s company furloughed all their staff. Last week, they asked my partner and a small team of his colleagues to come back to work. The company was running low on stock and was at risk of losing customers if they didn’t start operating, even at a small level.

It was explained that the company would only be operating during the day shift so those who normally received the shift allowance would no longer be entitled to it. My partner was relieved as this would not affect him.

Yesterday he received an email from HR asking him to confirm acceptance of a 20% reduction in his hourly rate. When he queried this, the HR manager replied apologising and said he was still on their files as working shifts from his previous position.

Later that day, the HR manager called my partner. She said that my partner had been receiving shift allowance and had to accept the 20% reduction. He explained that was not the case and that he had a letter from HR outlining his pay rise and it made no mention of receiving a shift allowance or being expected to complete shifts. He also pointed out that he had not worked a shift in 18 months and how a 20% reduction in his hourly rate would actually be less money than he earned before his promotion.

The phone call ended with the HR manager saying she had to speak to the MD as my partner’s manager and the HR advisor who worked on his promotion are still furloughed. She did not come back to him and my partner is due to return to work on Monday.

Returning to work in the current situation is very stressful and the worry of having his pay cut by 20% is having a massive effect on my partner. He already has very little confidence in this company due to other things that have happened over the last 18 months, including how his manager took his new contract back off him before he could sign it and never returned it.  

Does anyone have any advice on what we can do should they return still trying to enforce the 20% reduction? His hourly rate is the same as his colleagues who then also received shift allowance on top. However, he is concerned the company may say his standard hourly rate was less because he has slightly less experience despite there being no mention of progression in any of their discussions or the letter he received with his new hourly rate.

Thrugelmir

The company is looking at ways to cut costs to survive. Challenging times lie ahead for everyone. Are others going to have accept pay cuts to retain their jobs? 

Sassybot

Thanks for your reply but I think you may have misunderstood.
The company are only cutting shift allowance. Simply because they are no longer having the unsociable hour shifts. My partner was not one of those who worked the shifts and therefore never received shift allowance.

The company are trying to claim he did get a shift allowance, despite never working shifts or having it mentioned in his new job offer letter.  They're trying to take something off him that he never had. 

His colleagues who did work shifts have had the shift allowance removed. They have not been asked to accept any other reductions so it's not like they're trying to take the shift allowance and an extra 20%.

Marcon

Sassybot said:

The phone call ended with the HR manager saying she had to speak to the MD as my partner’s manager and the HR advisor who worked on his promotion are still furloughed. She did not come back to him and my partner is due to return to work on Monday.

Does anyone have any advice on what we can do should they return still trying to enforce the 20% reduction? His hourly rate is the same as his colleagues who then also received shift allowance on top. However, he is concerned the company may say his standard hourly rate was less because he has slightly less experience despite there being no mention of progression in any of their discussions or the letter he received with his new hourly rate.

Sounds like the company is a bit stuck in terms of accessing the people who might be able to confirm the position (hopefully in your partner's favour).

I think all your partner (not you - although your role in keeping his morale up is going to be crucial) can do is cross bridges as and when he comes to them i.e. resist the pay cut if they still try to enforce it, and argue about the experience issue if it happens. 

Savvy_Sue

Even if he cannot fully resolve it now, he should make it clear that he is working at the lower rate 'under protest', and does not accept that he should be paid less than he was before. This would be best done by letter or email. 

Is he in a union? If so I would speak to them. Sometimes being able to say "I shall take advice from my union" is very powerful. 

JReacher1

Surely if he was receiving a 20% shift allowance it would be a line item on his payslip. 

If he is no longer receiving this allowance then he should be able to show a payslip from 18 months ago where the shift allowance was stated and a payslip from now where it isn’t. 

That should prove he’s not receiving a shift allowance. 

Sassybot

Thanks every for your support
JReacher1 said:

Surely if he was receiving a 20% shift allowance it would be a line item on his payslip. 

Unfortunately not in this case. The nature of the job is that if you work the early or late shift, you work it exclusively so it is written into your contract that you get £X per hour and then 20% of that on top as shift allowance. When they were confirming the promotion, my partners manager sat down to run through the contract with him but quickly took it off him without their being chance for my partner to read it, let alone sign it. My partner has been asking for a copy of the contract ever since but, to be honest, he's not the type of guy to rock the boat. He'd rather keep his head down and do his job so has never flagged this to HR or higher management.

Savvy_Sue said:

Even if he cannot fully resolve it now, he should make it clear that he is working at the lower rate 'under protest', and does not accept that he should be paid less than he was before. This would be best done by letter or email. 

He's not part of a union but I've suggested he look into it. Mostly because this is the latest in a long list of issues with that company. He's going to email the HR manager today and confirm that he will be in tomorrow but does not accept that he should be paid less than before. I've also suggested he raise the contract issue in that email and ask for a copy of it, even though it is unsigned.

Marcon said:

Sounds like the company is a bit stuck in terms of accessing the people who might be able to confirm the position (hopefully in your partner's favour).

I'm really hoping this is the case but find it best to be prepared for all eventualities My partner seems happier today - bit of sleep and perspective does everyone the world of good. 

Hopefully he goes in tomorrow and they confirm it is all fine and I've just wasted all your times Something tells me we're in for a fight though. 

Undervalued

Sassybot said:

Thanks every for your support
JReacher1 said:

Surely if he was receiving a 20% shift allowance it would be a line item on his payslip. 

Unfortunately not in this case. The nature of the job is that if you work the early or late shift, you work it exclusively so it is written into your contract that you get £X per hour and then 20% of that on top as shift allowance. When they were confirming the promotion, my partners manager sat down to run through the contract with him but quickly took it off him without their being chance for my partner to read it, let alone sign it. My partner has been asking for a copy of the contract ever since but, to be honest, he's not the type of guy to rock the boat. He'd rather keep his head down and do his job so has never flagged this to HR or higher management.

Savvy_Sue said:

Even if he cannot fully resolve it now, he should make it clear that he is working at the lower rate 'under protest', and does not accept that he should be paid less than he was before. This would be best done by letter or email. 

He's not part of a union but I've suggested he look into it. Mostly because this is the latest in a long list of issues with that company. He's going to email the HR manager today and confirm that he will be in tomorrow but does not accept that he should be paid less than before. I've also suggested he raise the contract issue in that email and ask for a copy of it, even though it is unsigned.

Marcon said:

Sounds like the company is a bit stuck in terms of accessing the people who might be able to confirm the position (hopefully in your partner's favour).

I'm really hoping this is the case but find it best to be prepared for all eventualities My partner seems happier today - bit of sleep and perspective does everyone the world of good. 

Hopefully he goes in tomorrow and they confirm it is all fine and I've just wasted all your times Something tells me we're in for a fight though. 

There is no requirement for an employment contract to be signed or even in writing for it to be enforceable. Obviously it is far easier to prove what was agreed if it is but it is still a valid contract of employment. In any case the "contract" is far wider than just a sheet of paper with the word contract on it. It can include verbal agreements, policies, staff handbooks, notices on the tea room wall etc etc! Generally turning up, working and getting paid indicates acceptance of the "contract" unless it has very clearly been rejected and the employee asserts that they are working under protest.

Strictly speaking he should have been given a written "statement of main particulars of employment". However there is nothing that can be done about the failure to provide one unless the employee is taking the employer to a tribunal for some other reason. It can be added to a valid claim for something else but it is not actionable on its own. Crazy but that is how it is!

Sassybot

@Undervalued Yeah I found that out when the first company I worked for was acquired by another. I'm hopeful that when they dig out his contract they will see it doesn't mention the shift allowance. My partner said he saw the first page that had his hourly rate and hours of work (that demonstrated that the was on the day shift and therefore not entitled to shift allowance) before his manager took it off him. While not actionable in itself, it will certainly support a long list of other issues. 

I've just been talking to my partner about why he didn't chase up the contract issue more fervently. He said he doesn't have he best relationship with his manager but trusted the company would have flagged any problems by now. He also never saw an instance where the company could try something like this, even though there have been other issues. Lesson learnt I guess. I think he just wants to get through the next few months and find another job. 

pinkshoes

So what they are saying is that your partner earned £X + 20% whilst working shifts, but was promoted and moved to day work with a salary increase of £X + £Y, but the company have made a mistake and continued to apply the 20% (so (£X + £Y)+20%.).

So although it was a promotion, when you take the 20% shift allowance off, it was hardly any more money.

Was there anything in writing stating the salary for this promotion?

Sassybot

pinkshoes said:

So what they are saying is that your partner earned £X + 20% whilst working shifts, but was promoted and moved to day work with a salary increase of £X + £Y, but the company have made a mistake and continued to apply the 20% (so (£X + £Y)+20%.).
So although it was a promotion, when you take the 20% shift allowance off, it was hardly any more money.
Was there anything in writing stating the salary for this promotion?

If they are applying the 20% shift allowance (which they are not), my partner would have actually received a lesser rate than the one he was receiving before his promotion. 

His hourly rate is also the same as all his colleagues. His colleagues who work shifts get exactly the same basic hourly rate and then 20% on top. 

He has a letter confirming the promotion which states his hourly rate of pay is £X, there is no mention of shift allowance or having to work shifts. 

I'm hoping that they will be professional enough to admit their mistake and not continue to try it on.