Compulsory Paycuts?
Discussion
Not sure if this was better suited to "Business" or SP&L: What are the legal implications of a company imposing mandatory paycuts? So far, they correspond to a period of short working time (9-day fortnight) for those that are shop-floor based. Most office staff are being asked to maintain their full working week - and, after all, cutting sales effort makes little sense.
I had the call this morning, which has somewhat spoiled my weekend, as you can imagine, but I shall continue to work my normal hours (which, incidentally, exceed normal office hours as I am remote from any of our plants and cover Europe).
So, this is not a rant, nor am I planning to make a nuisance of myself, but I would like clarification of my position. I've not seen any guidelines or metric of when business is deemed to be sufficiently recovered to reinstate full wages.
Further, what are a company's contractual obligations with respect to bonus payment if all target have been met, but current policy (in the context of the above) is now that "no bonuses will be paid"?
I had the call this morning, which has somewhat spoiled my weekend, as you can imagine, but I shall continue to work my normal hours (which, incidentally, exceed normal office hours as I am remote from any of our plants and cover Europe).
So, this is not a rant, nor am I planning to make a nuisance of myself, but I would like clarification of my position. I've not seen any guidelines or metric of when business is deemed to be sufficiently recovered to reinstate full wages.
Further, what are a company's contractual obligations with respect to bonus payment if all target have been met, but current policy (in the context of the above) is now that "no bonuses will be paid"?
From what I have seen, and therefore not sure how correct this is (sure someone will correct me), a company cannot force someone to take a paycut/cut in hours, it has to be agreed and agreement signed. It is therefore up to the company involved and the employee to discuss when the pay would be reimbursed. If the employer was to threaten that you take the paycut or will be fired then think would be in position to look at unfair dismissal.
http://www.personneltoday.com/hrspace/forums/compu...
ANotherforum said:
is not quite as he has made out in his reply. Your employer is imposing a unilateral variation of contract on you. You say that you have 4 days to make a decision or you would be dismissed, but in effect you are already under notice and your current contract will end on that date. By stating that your contract will end your employer has forced the issue. If you attend work in 5 days then you will be deemed to have accepted the new terms and conditions by your actions.
You have three choices (although 2 and 3 depend on you having more than 12 months continuous service with the employer):
1. Accept the variation.
2. Attend work and lodge a tribunal claim on the basis that you have been dismissed and are suffering an ongoing loss of earnings
3. Leave and claim unfair dismissal.
If your employer has failed to comply with he statutory dismissal procedures in his dealings with you then you have already won and unfair dismissal claim and any argument in tribunal is about how much you should be paid. If he has not then you will need to lodge an appeal against the dismissal before you can proceed to a tribunal.
If your empoyer has failed to consult or take any reasonable steps to try and meet with you to discuss the matter then they will have major problems. In addition you may not have been givent he correct amount of notice and so could have a breach of contract claim.
Sounds about right to me....You have three choices (although 2 and 3 depend on you having more than 12 months continuous service with the employer):
1. Accept the variation.
2. Attend work and lodge a tribunal claim on the basis that you have been dismissed and are suffering an ongoing loss of earnings
3. Leave and claim unfair dismissal.
If your employer has failed to comply with he statutory dismissal procedures in his dealings with you then you have already won and unfair dismissal claim and any argument in tribunal is about how much you should be paid. If he has not then you will need to lodge an appeal against the dismissal before you can proceed to a tribunal.
If your empoyer has failed to consult or take any reasonable steps to try and meet with you to discuss the matter then they will have major problems. In addition you may not have been givent he correct amount of notice and so could have a breach of contract claim.
Many thanks for the replies. As I understand it then, there should have been a period of one-on-one consultation but, by not challenging the reduction, I am deemed as accepting it? Additionally, if I challenge it and they decide the only recourse is dismissal, then the lack of prior consultation puts me in a strong position?
I think most people are grateful for the security of their jobs, and I certainly would not jeopardise my own job; the cynic in me suggest this is what our employer is relying on.
No Elise for me, this year.
I think most people are grateful for the security of their jobs, and I certainly would not jeopardise my own job; the cynic in me suggest this is what our employer is relying on.
No Elise for me, this year.
What does it say in your contract?
Where I work we have put the engineers on short working time, (2/3 days a week worked.) but it was outlined in their contract that this could be done. If you are put on short time for a certain period, you can then claim redundancy, for short time it is after 6 weeks within a 13 week time period.
One of the engineers left during this period, and 2 were then made redundant.
Where I work we have put the engineers on short working time, (2/3 days a week worked.) but it was outlined in their contract that this could be done. If you are put on short time for a certain period, you can then claim redundancy, for short time it is after 6 weeks within a 13 week time period.
One of the engineers left during this period, and 2 were then made redundant.
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