significant reduction in earnings

[steveT350C]

Hi all,


Just been chatting with the guy who does the logistics for the company i work for. I asked him to email me his situation so i could post here.....



"My current salary is 20k with a bonus of 12k
I have been paid the same for 3 & half years & now the company want to remove the bonus but add 6k to my salary…….
I will lose 6k a year.

Can they do this?"


Just wanted to add that he always gets his bonus, automatically it seems. HR then turned up with a new contract for him to sign which thankfully he didnt before reading it through.

Does my colleague have any rights?


cheers,

Steve

[softtop]

It all depends on what is contractual.

[steveT350C]

meaning what is in the small print of current contract?

probably the best place to start, cheers

[shep1001]

As the others have said it depends what is in the contract...


My % of salary loyalty bonus was removed this year but had to be divided into 12th's and paid as salary as it effectively made up part of my contractual T&C's . Some team members did not like this idea as they could not save each month. We were effectively given 6 months notice (our notice period in effect) that our contracts were changing if we didn't like it then tough. My understanding is your employer can change T&C's on your contract given the required notice period, you don't have to accept them but by failing to do so you effectively resign yourself.