50% Cut in hours on an already part-time wage

Astro_100

Hi,

What would you do in this situation? 

For the last 10 yrs the small company I work for has just got smaller and smaller. In the 18 months before the pandemic, through sheer bad luck, the company lost 3 of its biggest clients.  For the 3 months before the pandemic I did not have enough work to do and probably would have been made redundant quickly if I was in a different company. So I was put on furlough which in effect just froze the situation. My company did not communicate much with me over furlough. Now I have been encouraged to accept a 50% cut in hours. (I'm part-time on 4 days a week normally). In the meeting I asked what the alternative to accepting the cut in hours was, and everyone looked uncomfortable and changed the subject. In the end I responded in writing to say that I could not consent to the change due to huge financial impact. I've heard of other companies suggesting a 5% - 20% pay cut, but 50% seems absurd. Either you can afford the staff member or not. I've been there 13 years so I'm expensive to get rid of in terms of redundancy pay, ( plus 3 months notice and a whole year of unused holiday allowance). I believe making me redundant is the last thing they'll do if they can help it. What do you think is coming next? Dismissal because I didn't accept the change in hours? I feel they are using the pandemic as an excuse. I have no confidence in the businesses recovery. What do you think?

Andy_L

Astro_100 said:

Hi,

What would you do in this situation? 

For the last 10 yrs the small company I work for has just got smaller and smaller. In the 18 months before the pandemic, through sheer bad luck, the company lost 3 of its biggest clients.  For the 3 months before the pandemic I did not have enough work to do and probably would have been made redundant quickly if I was in a different company. So I was put on furlough which in effect just froze the situation. My company did not communicate much with me over furlough. Now I have been encouraged to accept a 50% cut in hours. (I'm part-time on 4 days a week normally). In the meeting I asked what the alternative to accepting the cut in hours was, and everyone looked uncomfortable and changed the subject. In the end I responded in writing to say that I could not consent to the change due to huge financial impact. I've heard of other companies suggesting a 5% - 20% pay cut, but 50% seems absurd. Either you can afford the staff member or not. I've been there 13 years so I'm expensive to get rid of in terms of redundancy pay, ( plus 3 months notice and a whole year of unused holiday allowance). I believe making me redundant is the last thing they'll do if they can help it. What do you think is coming next? Dismissal because I didn't accept the change in hours? I feel they are using the pandemic as an excuse. I have no confidence in the businesses recovery. What do you think?

1. There's a difference between a 5-20% pay cut while still doing the same hours & you situation which seems to be keeping the same hourly rate but working less hours.

2. It won't be dismissal, because you haven't done anything wrong. It will be a redundancy situation because they don't have the work to justify the job for 4 days a week. That will require them to jump through some hoops & look at alternatives (eg redeployment) but, ultimately, they will make you redundant if no alternatives are available/suitable

3. Then you should be looking elsewhere for a new job

Borders2017

It sounds like your job is no longer viable. they are just delaying the pay off/ forcing your hand. That's just pandemic issues for you. If you are in a sector that is still struggling you will ned to re-train and get out while the jobs market elsewhere is still good.

Brie

I'm glad you responded in writing as that makes your position clear.  I would hope that you get something in writing back. 

I would suggest you don't resign as that gives them what they want essentially - rid of you.  Do start looking for another job but keep that to yourself as much as possible while they decide how to respond to your letter.  

Standard redundancy payments is (I believe) 3 weeks pay for every year of service = 3 x 13 = 39 weeks so a few months worth of pay.  Worth hanging around for at least a while.

Jaybee_16

Brie said:

Standard redundancy payments is (I believe) 3 weeks pay for every year of service = 3 x 13 = 39 weeks so a few months worth of pay.  Worth hanging around for at least a while.

Unfortunately there are few employers willing to be that generous. 

Redundancy pay

You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.

You’ll get:

• half a week’s pay for each full year you were under 22
• one week’s pay for each full year you were 22 or older, but under 41
• one and half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years.

Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

Redundancy: your rights: Redundancy pay - GOV.UK (www.gov.uk)

Brie

Oops!  Guess I work for a generous company!!  

In any case it would maybe 3 months salary depending on the age which is still better than nothing.  And would need to be paid based on the current wage rather than the reduced one.  

getmore4less

Don't forget statutory is capped at £544pw as well so not full salary if annual is over ~£28,300

lincroft1710

Do you realise this thread is 2 months old!