Pay Cut - Can they get away with it?

Ady_2 · 5 September 2007 at 12:34AM

Hi

Can you please help or advise me?

I work for a large plc that was taken over approx 18 months ago from a privately owned firm as a Senior-ish Manager.

Since the takeover my Salary has changed slightly for the better (or bonus structure has). This was I believe done in the correct manner, and I have this new structure in Writing with Basic Salary and OTE etc etc.

I was asked at the end of this April to move to a different location (I was not given a choice), one that wasn't performing (same job role bigger site which was spilt into 2 separate business on one site with 2 site leaders) I negotiated a slightly better Basic Salary and OTE. Within 3 Months a cost cutting exercise had materialised and whilst on Holiday, somebody else from within the group had been given both mine and my colleagues roles (not the best surprise on returning from holiday) the other senior manager was given the same role he had previous but at a site closer to home. I was told I had been demoted, this guy had already started. I had been told I had 'done a cracking job' in the short time I had been there and that It was only a temporary measure whilst a more experienced Manager temporary took the rains to gel the 2 sites together, however my salary, package and benefits remained unchanged even though my responsibilities were now smaller. I'm still told by the directors that I'm doing a fantastic job and earning all the bonus's as the business is doing very well now especially the department I’m now running.
However I have now been told that my new role and Salary doesn't fit in within the structure of the site I'm at and my choices are:

A) That I must now take a further demotion and substantial pay cut on my Basic Salary to do the job I’m doing - but will get a guarantee for a number of months -maybe 6? But the Guarantee isn't as high as my current Basic Salary never mind OTE

My employer will transfer me to yet another under performing site that my salary will fit, at this site I have no chance of earning any bonus's - of which I rely on to live off. The offer is still not as Senior Manager.

I have spoken to payroll at Head office, they are unaware my Current Job Role and still have me as the Site Senior Manager and not the role that I'm currently doing.

Can my employer reduce my Basic salary by Many Thousands of pounds even though I don't agree to it and had verbal confirmation from my Director that my Salary would be unchanged and my Current Payslips still show the higher Basic even though I'm doing the Demoted role which looks like on an unofficial basis?

Can they insist I move to a site where I won't earn any bonus?

Can my employer do this to me?

What are my rights, if any?

What can I do?

Please Help

Thank you.

cazziebo · 5 September 2007 at 10:14AM

What a thorny problem and it's difficult to advise without knowing it from all perspectives.

to first of all answer your question, a company can introduce salary cuts as long as they follow the right process and it may well be that they are. If you are at a senior level then your contract probably also states that you will work where required, so yes you can be moved and it's likely that bonuses are not contractual, therefore will not be guaranteed.

However there a couple of complexities here.

First one is the mixed messages. When you first moved, were you aware that it was a temporary arrangement?

Second one is the TUPE transfer regulations. The fact the company was taken over should not adversely influence your employment terms and conditions.

You've been given very positive feedback, it sounds as if you are a valued employee. For a first step I would have an open and frank discussion with your line manager and if that's not possible then HR. You may well have a legitimate grievance here.

Hope this helps and that you sort it out.

Pay Cut - Can they get away with it?

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