Employer reducing salary without my acceptance
Discussion
I know there was a similar post recently but my situation is quite different.
I am a long term lurker so please accept I’m not a troll.
My situation-
Signed contract that included salary and a guaranteed bonus per day on site. No mention in contract of any way employer can change terms and conditions.
6 months 1 week later I and 10-20 others receive an email detailing that the bonus is being reduced by 35% plus being back dated 1 week to the start of the month and it is now totally discretionary.
Told to sign contract variation with no consultation.
My question is can I-
a/ Resign with no notice as they are being unreasonable and have breached the contract.
B/ Go to MCOL to claim damages for losses during notice period.
C/ Ignore restrictive covenants as they have breached the contract.
Thanks for any help.
I am a long term lurker so please accept I’m not a troll.
My situation-
Signed contract that included salary and a guaranteed bonus per day on site. No mention in contract of any way employer can change terms and conditions.
6 months 1 week later I and 10-20 others receive an email detailing that the bonus is being reduced by 35% plus being back dated 1 week to the start of the month and it is now totally discretionary.
Told to sign contract variation with no consultation.
My question is can I-
a/ Resign with no notice as they are being unreasonable and have breached the contract.
B/ Go to MCOL to claim damages for losses during notice period.
C/ Ignore restrictive covenants as they have breached the contract.
Thanks for any help.
There’s something around Terms and Conditions and both are separate and different.
One can be changed without your agreement the other can’t.
iirc your salary, hours, notice period and location are the terms and can’t unilaterally be changed but bonus’ overtime etc are discretionary conditions and can be.
So, the employer may not have breached anything but just varied the conditions which they’re allowed to do.
ianal so may be wrong.
One can be changed without your agreement the other can’t.
iirc your salary, hours, notice period and location are the terms and can’t unilaterally be changed but bonus’ overtime etc are discretionary conditions and can be.
So, the employer may not have breached anything but just varied the conditions which they’re allowed to do.
ianal so may be wrong.
What does the actual wording of the guaranteed bonus say? Is it contractual and the amount fixed, any right to vary mentioned anywhere in the published terms or offer letter?
Have you actually challenged the decision and asked on what basis they are changing a bonus you consider guaranteed? My first act would be to ask them that question in writing, you will then know what defence they would use for any subsequent claim. Knowing that will help you plan your next step or drop your action if they give you a legally sound reason to support their action.
Have you actually challenged the decision and asked on what basis they are changing a bonus you consider guaranteed? My first act would be to ask them that question in writing, you will then know what defence they would use for any subsequent claim. Knowing that will help you plan your next step or drop your action if they give you a legally sound reason to support their action.
I would not want to give legal advice regarding whether it is a breach of contract, but in terms of claiming the difference in bonus payments for a week (or two weeks, if backdated to start of month?) then I would imagine it is not worth the time and trouble unless you were on an amazing amount.
I'd concentrate your attention on the important parts which are (a) Can you just walk out (presumably to a competitor) and (b) Is there anything they can do about you taking customers with you.
For that I do think you should ensure you have insured legal advice, as I remember another poster here who had a very long and painful dispute.
I'd concentrate your attention on the important parts which are (a) Can you just walk out (presumably to a competitor) and (b) Is there anything they can do about you taking customers with you.
For that I do think you should ensure you have insured legal advice, as I remember another poster here who had a very long and painful dispute.
I have experienced this very thing.
The legal advice will likely be to try and come to a settlement, lawyers don’t really quantify risk. Settlement is often difficult as I anticipate the relationship will not be good
With regards to your options.
1. Resignation on notice is an option, however the wording of your contract is key. If the bonus was ‘guaranteed’ essentially a per diem and part of your original t’s and c’s then your employer may be in breach. But often a reduction clause is contained within the contract. A reduction in package has to be agreed by you. I was presented with a letter to sign.
2. Restrictive covenants, these are a pain, however the presumption in law is that they are difficult to enforce (they are a restriction of free trade),
How long do they last? more than 6 months and they are often unenforceable. In addition what do they cover, non-solicitation, non dealing, non competition ( they are pretty standard).
If your employer is breaching your contract then they become even more difficult to enforce, this doesn’t reduce the stress factor though.
My advice agree to nothing, inform that you will need to consider your options and seek advice. Go through the restrictive covenants with a fine tooth comb, often these are not worth the paper they are written on if they are too broad or onerous. Sometimes banning someone from essentially working anywhere in their sector.
The legal advice will likely be to try and come to a settlement, lawyers don’t really quantify risk. Settlement is often difficult as I anticipate the relationship will not be good
With regards to your options.
1. Resignation on notice is an option, however the wording of your contract is key. If the bonus was ‘guaranteed’ essentially a per diem and part of your original t’s and c’s then your employer may be in breach. But often a reduction clause is contained within the contract. A reduction in package has to be agreed by you. I was presented with a letter to sign.
2. Restrictive covenants, these are a pain, however the presumption in law is that they are difficult to enforce (they are a restriction of free trade),
How long do they last? more than 6 months and they are often unenforceable. In addition what do they cover, non-solicitation, non dealing, non competition ( they are pretty standard).
If your employer is breaching your contract then they become even more difficult to enforce, this doesn’t reduce the stress factor though.
My advice agree to nothing, inform that you will need to consider your options and seek advice. Go through the restrictive covenants with a fine tooth comb, often these are not worth the paper they are written on if they are too broad or onerous. Sometimes banning someone from essentially working anywhere in their sector.
Edited by JD84 on Sunday 15th September 00:09
Thanks for the responses.
I have had a really good look at my contract and there is no reduction clause.
My contract states that I get so much salary plus so much per day depending where I am based eg Europe or UK and differences for weekdays and weekends.
I have been sent an email saying the cut is a business decision no other reason. Since then I have been sent a letter to sign agreeing to the change. I have not signed this.
There was no consultation at all.
Since then I have been approached by another company who want me to start pretty much immediately. I am waiting for the offer in writing. I am pretty lucky that what I do is still quite in demand.
The guys I work with are all very upset with this change with no discussion.
What is the point of a contract if one side can just change it at will?
I have had a really good look at my contract and there is no reduction clause.
My contract states that I get so much salary plus so much per day depending where I am based eg Europe or UK and differences for weekdays and weekends.
I have been sent an email saying the cut is a business decision no other reason. Since then I have been sent a letter to sign agreeing to the change. I have not signed this.
There was no consultation at all.
Since then I have been approached by another company who want me to start pretty much immediately. I am waiting for the offer in writing. I am pretty lucky that what I do is still quite in demand.
The guys I work with are all very upset with this change with no discussion.
What is the point of a contract if one side can just change it at will?
Breach of contract can be taken to an Employment Tribunal for an employee - claim limit value of 25k currently. And claim within three months of the termination . There is also a lower chance of costs - again however this is predicated on the value of the claim which you might otherwise bring in the civil courts i.e. small claim or higher....
IANAL and its probably worth getting an appointment with one before acting.
If you have a firm offer from the other side, you could potentially resign from your current position stating they've repudiated the contract with you.
You could stay and fight your corner, however if you've less than 2 years' service, you're a dead man walking.
Unless there are big sums or an amazing career at stake, it's often better to be pragmatic as opposed to fighting to the death over scraps.
If you have a firm offer from the other side, you could potentially resign from your current position stating they've repudiated the contract with you.
You could stay and fight your corner, however if you've less than 2 years' service, you're a dead man walking.
Unless there are big sums or an amazing career at stake, it's often better to be pragmatic as opposed to fighting to the death over scraps.
Again thanks. I am going to resign tomorrow. My contract gives a months notice rather way but as they have broken the contract then I am going to offer a weeks notice.
I don’t think they have a leg to stand on.
I’ve also looked at my house insurance which has a legal helpline and I’ll call them tomorrow.
I will update once things happen.
I don’t think they have a leg to stand on.
I’ve also looked at my house insurance which has a legal helpline and I’ll call them tomorrow.
I will update once things happen.
janesmith1950 said:
My understanding is that for a contract to be repudiated one party only has to say they aren't going to honour it, not actually breach.
He could accept and sue for damages or object and stick to orginal contract terms, then if they fail to honour ,sue. If you resign at the sight of a change then as i can see you have less options, but happy to proved overwise. As I said surely this all comes down to what is actually written on the contract..
TSG sorry I can’t quote the contract word for word but it is very clear English of my terms and conditions.
Really now I just need to know if they can enforce other conditions even though they have changed the contract without my agreement or consultation.
It’s a shame Breadvan77 no longer posts.
Really now I just need to know if they can enforce other conditions even though they have changed the contract without my agreement or consultation.
It’s a shame Breadvan77 no longer posts.
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