Cut in Pay?

FakeSheikh2

Old-Salt
Company I work for has decided that we will all take a 10% pay cut for at least the next 6 months?
This is due to the massive downturn in business expected due to the Corona Virus.
Can they legally do this as my employment contract says £xxk per year.

OK, I keep my job but at a considerable cost to me of a loss in salary?

The issue is before I joined they did this back in 2008 and after the financial crisis pay stayed the same and no increase. Only way was to ask for a pay rise, in effect most were on a lower pay for at least 1 year whilst the business profit grew considerably in this time.

Any thoughts from those in the know?
 
Company I work for has decided that we will all take a 10% pay cut for at least the next 6 months?
This is due to the massive downturn in business expected due to the Corona Virus.
Can they legally do this as my employment contract says £xxk per year.

OK, I keep my job but at a considerable cost to me of a loss in salary?
Or you can leave, with a considerable cost to yourself of a loss in salary, until you find another employer.
 

Daxx

MIA
Book Reviewer
I imagine this is 'voluntary'. The alternative is likely redundancy?
 

FakeSheikh2

Old-Salt
I do not argue it, just wanted views, in our volatile IT sector 1 good deal can turn it around
 
Charge them the difference for rent if you are working from home - be prepared to go to a tribunal when they make you redundant
 
The company I work for lost a major contract, (massively undercut by a firm that has royally fooked it up - but I digress)

Bottom line is, I(and the rest of my level of management) took a £4k pay cut to keep our jobs, that's the harsh reality of working in the Private Sector, would you rather get a dole cheque or a smaller pay cheque? I know which I would rather have.

Things are on the up now ironically, and we have all been promised at least £2k of it back this April - but i'll wait and see!
 
Company I work for has decided that we will all take a 10% pay cut for at least the next 6 months?
This is due to the massive downturn in business expected due to the Corona Virus.
Can they legally do this as my employment contract says £xxk per year.

OK, I keep my job but at a considerable cost to me of a loss in salary?

The issue is before I joined they did this back in 2008 and after the financial crisis pay stayed the same and no increase. Only way was to ask for a pay rise, in effect most were on a lower pay for at least 1 year whilst the business profit grew considerably in this time.

Any thoughts from those in the know?
It could be seen as constructive dismissal.

As you say you have a contract and this would be a breach of it.

They say its an "expected" downturn in business... Why not ask them to wait and see?
 

Sixty

ADC
Moderator
Book Reviewer
Can they legally do this as my employment contract says £xxk per year.
No, not without your consent. As others have said though, it's not the only weapon in their arsenal. Redundancy and reapply on new terms etc.
 
Company I work for has decided that we will all take a 10% pay cut for at least the next 6 months?
This is due to the massive downturn in business expected due to the Corona Virus.
Can they legally do this as my employment contract says £xxk per year.

OK, I keep my job but at a considerable cost to me of a loss in salary?

The issue is before I joined they did this back in 2008 and after the financial crisis pay stayed the same and no increase. Only way was to ask for a pay rise, in effect most were on a lower pay for at least 1 year whilst the business profit grew considerably in this time.

Any thoughts from those in the know?
I take it you are salaried.

It all depends what your contract says, it should state your renumeration and contracted hours, but it may have a clause in it that that allows them to alter this.

If such a clause exists it could be onerous or deemed unreasonable. Case law exists to protect you in this instant, using the ‘red hand rule’.

Lord denning provided in J Spurling Ltd v Bradshaw [1956] EWCA Civ 3 -

I quite agree that the more unreasonable a clause is, the greater the notice which must be given of it. Some clauses which I have seen would need to be printed in red ink on the face of the document with a red hand pointing to it before the notice could be held to be sufficient.

It is possible that you could leave and claim constructive dismissal, but you need to seek proper advice before doing anything.
 

Chalkster69

Old-Salt
Company I work for has decided that we will all take a 10% pay cut for at least the next 6 months?
This is due to the massive downturn in business expected due to the Corona Virus.
Can they legally do this as my employment contract says £xxk per year.

OK, I keep my job but at a considerable cost to me of a loss in salary?

The issue is before I joined they did this back in 2008 and after the financial crisis pay stayed the same and no increase. Only way was to ask for a pay rise, in effect most were on a lower pay for at least 1 year whilst the business profit grew considerably in this time.

Any thoughts from those in the know?
Key word there is "expected" in regards to the downturn. If it's an IT type company, I'd have thought that they'd be expecting an upturn given that lots more people are working from home now - so they'll need the infrastructure & support. It may be worth putting your CV out there as others may well be hiring!!

I'm in Telecomms & we're selling 100Gbs left right & centre at the moment to companies that need to increase their bandwidth to allow for home working & expansion later on when there may be stricter movement controls.
 
I'd update your CV and start looking around for jobs just in case

If they're prepared to slash your wages, they can't really expect you to turn down better paid work elsewhere
 

FakeSheikh2

Old-Salt
The Board are still sitting some 6 hrs so far, my CoC have no idea whats going on.
2 Whispers so far are anyone under 6 months in the company would go & under 1 year a pay cut.
But until the Department Heads are briefed anything could happen, as 1 boss said until it happens why worry!

However cheers for the varied input arrsers as the many different views are interesting.
 
It will almost certainly be voluntary. Think yourself lucky, I’m going back to what is probably a 25% cut in salary or unemployment.

still. Everything fine in public services and the pensions are guaranteed............
 
It will almost certainly be voluntary. Think yourself lucky, I’m going back to what is probably a 25% cut in salary or unemployment.

still. Everything fine in public services and the pensions are guaranteed............
Ouch. What area of the public services are you in?
 

9.414

Old-Salt
The Board are still sitting some 6 hrs so far, my CoC have no idea whats going on.
2 Whispers so far are anyone under 6 months in the company would go & under 1 year a pay cut.
But until the Department Heads are briefed anything could happen, as 1 boss said until it happens why worry!

However cheers for the varied input arrsers as the many different views are interesting.
It that is the state of things in your firm, likelyhood is that anybody who has not yet got employment protection by time gets chopped. That saves some cash.

Next comes "unpaid leave", then voluntary pay reduction (by negotiation) which could be a variety of short time/short pay. This is for those with job protection. You might need to lawyer up if you dont have union protection.
 
Company I work for has decided that we will all take a 10% pay cut for at least the next 6 months?
This is due to the massive downturn in business expected due to the Corona Virus.
Can they legally do this as my employment contract says £xxk per year.

OK, I keep my job but at a considerable cost to me of a loss in salary?

The issue is before I joined they did this back in 2008 and after the financial crisis pay stayed the same and no increase. Only way was to ask for a pay rise, in effect most were on a lower pay for at least 1 year whilst the business profit grew considerably in this time.

Any thoughts from those in the know?
It's worth checking your building and contents insurance to see if you have legal expenses cover, just in case.

And some employee benefit schemes such as death in service plans come with a 24 hour helpline for all sorts of matters, including employment issues so if you have any benefit like that, check it out.
 

FakeSheikh2

Old-Salt
Looking like at the moment I have a job still, more concern seems over if I went ill.
However by end of April all might change for the good/bad?

But having a job even with a pay cut if it happens is better than universal credit & signing on fortnightly with the unwashed, druggies, chasing the dragon ladies & those that offer a BJ for £30,oh yes local joke shop job centre that cosmopolitan!
 

ugly

LE
Moderator
I worked for a consultancy in the 90's who froze our pay, our clients and suppliers were all getting cost of living rises of 7 to 9%. We got nothing and eventually found out that they had stopped paying into our pensions.
Not a lot to do bar walking away!
I walked away!
 
We got nothing and eventually found out that they had stopped paying into our pensions.
Not a lot to do bar walking away!
I walked away!
Shame you've got me on Ignore because I know how to redress that.
 

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