Work want to reduce my salary - Do I have to accept? URGENT

[callywally18]

Hoping for some PH wisdom here, I will try and summarise as best I can my current situation...

October 2018 I was approached to come and work for my current company, working in sales to help launch their EV charging stations. I have a lot of construction and automotive contacts and experience, so seemed a match made in heaven.

I was told they were launching in the coming weeks, everything stacked up so accepted the offer.

Long story short, after 4 months of me researching, prospecting and building a pipeline, the company decided against launching the EV chargers, which as I am sure you can imagine was very frustrating.

Member of staff leaves, I am asked to take on some of their duties for a small pay rise, which I accept.

The role does not take up much time so extra work is minimal in my opinion.

Company are facing financial issues, now want to reduce my salary to original salary which I joined on. They tried to do this by paying me my original salary, without consulting me.

I kick up a fuss and I am paid my correct amount, I now have a meeting scheduled tomorrow to discuss this.

I feel the meeting will be we cannot afford you, either take £x amount or get lost. Can they do this? Do I have to accept or leave?

I have everything in writing, my pay rise, my job title etc. They have tried to say the rise was temporary, which it was not. They even had the cheek to suggest I may have to pay back the difference!

Any advice greatly appreciated!

Cheers

[Europa1]

If someone tells you, will you update us on your nutty neighbour with "her" ornate pavement?

[bristolbaron]

You don’t have to accept, but ultimately that may see you without a job. If they want to tell you to leave there’s not a huge amount you can do about that.

The questions really whether you’re happy don’t the original job for the original money knowing these sorts of things can happen with this employer.

I’d be seeing whether there’s negotiating room between the two or what the best expected payrise/promotion would be if they don’t need you to fulfil the role you’ve been covering.

[parabolica]

Can they reduce your salary? Yes, but with proper consultation as to why it is absolutely necessary. Good that you have everything in writing, and worth trying to open a dialogue with them about getting everyone resolved to everyone's satisfaction. But I would ask you if you're prepared to fight this rather than look for alternative employment? You have less than 2 years service so they could go nuclear and dismiss you/make you redundant and there would be little you could do, if they were so inclined. If the company is on the rocks, I'd be looking elsewhere personally.

Good luck.

[Gargamel]

Just to echo the above

They absolutely can reduce your salary unilaterally. I would expect them to have notified you, and discussed it with you first.

I think you are entitled to ask why they are doing this, and if what expectations they have of you (IE are you also doing less work ?).


Ultimately they could simply terminate your contract, as they aren’t launching EVs anyway do they really need your role ?

Sure they should consult and try to reach an agreement with you, but there is nothing legal to prevent them.


The situation would be different if it was a unionized environment, or you had more than two years of service where I think a unilateral move to cut your pay would almost certainly be constructive dismissal if you choose not to accept it.

[callywally18]

Thanks for the responses.

Since the non-launch of the EV chargers I have been selling other services, assisting in marketing, created a new website and managed some accounts - so more than enough to warrant my position and cover my overheads.

I think the way they have gone about it, by sneakily paying me a lower rate rather than trying to discuss it, is what makes me feel like its part of a plan to dismiss me, I think its a mix of the business on the rocks and my face does not seem to fit, as most people here have been here a while and are very tight.

From day 1 it has not been ideal,

- Supposed to get a company car from day 1, took 4 months
- The whole EV charger thing
- Took 2 months to get pricing for other products
- Still no product training
- Minor things like never invited to events etc

From the above I am sure you can see where I am coming from. I think it may be best to maybe seek alternative employment, but want to allow myself as much time as possible.

[xjay1337]

callywally18 said:

Thanks for the responses.

Since the non-launch of the EV chargers I have been selling other services, assisting in marketing, created a new website and managed some accounts - so more than enough to warrant my position and cover my overheads.

I think the way they have gone about it, by sneakily paying me a lower rate rather than trying to discuss it, is what makes me feel like its part of a plan to dismiss me, I think its a mix of the business on the rocks and my face does not seem to fit, as most people here have been here a while and are very tight.

From day 1 it has not been ideal,

- Supposed to get a company car from day 1, took 4 months
- The whole EV charger thing
- Took 2 months to get pricing for other products
- Still no product training
- Minor things like never invited to events etc

From the above I am sure you can see where I am coming from. I think it may be best to maybe seek alternative employment, but want to allow myself as much time as possible.

Personally depends how much you are being offered less

I would probably take the reduced salary and immediately look for other jobs.

Remember they can fire you for any reason no need to go through any processes other than your contracted notice period for the first 2 years (I think that is a crap rule but hey ho).

[callywally18]

xjay1337 said:

callywally18 said:

Thanks for the responses.

Since the non-launch of the EV chargers I have been selling other services, assisting in marketing, created a new website and managed some accounts - so more than enough to warrant my position and cover my overheads.

I think the way they have gone about it, by sneakily paying me a lower rate rather than trying to discuss it, is what makes me feel like its part of a plan to dismiss me, I think its a mix of the business on the rocks and my face does not seem to fit, as most people here have been here a while and are very tight.

From day 1 it has not been ideal,

- Supposed to get a company car from day 1, took 4 months
- The whole EV charger thing
- Took 2 months to get pricing for other products
- Still no product training
- Minor things like never invited to events etc

From the above I am sure you can see where I am coming from. I think it may be best to maybe seek alternative employment, but want to allow myself as much time as possible.

Personally depends how much you are being offered less

I would probably take the reduced salary and immediately look for other jobs.

Remember they can fire you for any reason no need to go through any processes other than your contracted notice period for the first 2 years (I think that is a crap rule but hey ho).

Its £5k less. So its not an astronomical amount of money, but still a fair drop that would certainly mean need to tighten things up with bills etc.

[xjay1337]

It's a betting game ultimately.

1) you refuse the salary reduction. they suck it up and you carry on as normal
2) you refuse the salary reduction, they either force you to accept new contract or fire you
3) you accept the reduction , you keep some income and you can either stay or leave

Personally I would go with option 3 , assuming you don't have a healthy amount of money to sit back on while you job hunt.

By agreeing to the reduction it will placate them for a few months giving you chance to find other opportunities.
It's hard to tell whether they are legitimately trying to save money but £5k wouldn't be worth trying to save given you are effectively saving them £30k (estimated) on the other employee!

[callywally18]

xjay1337 said:

It's a betting game ultimately.

1) you refuse the salary reduction. they suck it up and you carry on as normal
2) you refuse the salary reduction, they either force you to accept new contract or fire you
3) you accept the reduction , you keep some income and you can either stay or leave

Personally I would go with option 3 , assuming you don't have a healthy amount of money to sit back on while you job hunt.

By agreeing to the reduction it will placate them for a few months giving you chance to find other opportunities.
It's hard to tell whether they are legitimately trying to save money but £5k wouldn't be worth trying to save given you are effectively saving them £30k (estimated) on the other employee!

Yeah it is a tricky one, I am tempted to stay, and hunt for something else. But then with no holidays left it would be really difficult to escape for interviews, and from experience employers these days arent too flexible for out of hours interviews.

I think they think I will refuse the pay cut, so if I was to accept, I have a feeling they may try other things like getting rid of my company car etc.

[mr_spock]

I would go with accepting the pay cut to take effect from Jan '20, on the basis that you've planned your life around your salary and can't immediately reduce your outgoings (or pick some other date, whatever).

Or agree to exchange the pay cut for a couple of days more holiday.

[Muzzer79]

mr_spock said:

I would go with accepting the pay cut to take effect from Jan '20, on the basis that you've planned your life around your salary and can't immediately reduce your outgoings (or pick some other date, whatever).

Or agree to exchange the pay cut for a couple of days more holiday.

This

Ultimately, they're either going to pay you less or they're going to make you redundant.

So, propose a compromise and start job hunting.

[Davel]

Sounds like they may have a cash problem and want to reduce their outgoings.

Good luck

[Royce44]

They sound like a nightmare to work for. Take the forced cut if you have too to keep the peace but get out of there asap

[CubanPete]

You could agree to appear cooperative, but, suggest your contracted salary is left as is and if you are at risk of redundancy then any reduced pay is made back up.

[Terminator X]

I'd refuse but immediately look for a new job. Changes to a contract need permission of both parties but if you have been there under 2 years nowt you can do if they terminate the contract.

TX.

[callywally18]

Thanks for all the responses guys.

I have a sit down with them today at 10 AM, so will see how that goes.

I think I will see what the tone of the meeting is and where it is going to, before I make a decision of what outcome to go for. I may be overplaying it in my head and may not be as sinister as I expect, but this and past actions make me think I am right and that the worst is a possibility.

I have a months notice so that would be the worst case I think.

If I dont agree to the pay reduction and given a months notice, will my notice be at my correct pay or reduced pay?

Cheers!

[mr_spock]

Notice will be at current pay. As I said before, you can probably get them to give you something that costs them less or nothing in cash terms.

[Heathwood]

mr_spock said:

Notice will be at current pay. As I said before, you can probably get them to give you something that costs them less or nothing in cash terms.

If finances are the main sticking point, perhaps an extra weeks holiday pa to compensate for the reduction in pay?

[xjay1337]

OP, you said you had a meeting at 10. How that that go? Fingers crossed for you