Salary reduction without notice
Discussion
I'm Looking for some advice please.
In February I was awarded a pay rise which would have come into effect on the 1st of May.
I was Furloughed at the end of March and returned on the 1st of June. In my return to work notification it stated that my employment terms would be the same as they were prior to me being furloughed. Prior to being furloughed I was on a monthly performance based bonus scheme paid quarterly.
I asked for clarification as to which package I am now working, the previous bonus package or the new salary, the response was "you know the company can change your terms don't you?" We're due to have a meeting to discuss tomorrow.
There is a clause in my contract stating that terms can be changed which is fine but surely it can't be done retrospectively? Am I supposed to be given notice that my salary (including bonuses) would be reduced?
I'd like to point out that I work for a small company and it is doing very well financially (we're set for a very good month, last month was also very good) and investing in other parts of the business including pay rises for some employees.
Am I wrong to feel a bit shafted at the thought I may be on less money now than I was prior to being furloughed despite the company doing as well as they were prior to lockdown?
Thank you
In February I was awarded a pay rise which would have come into effect on the 1st of May.
I was Furloughed at the end of March and returned on the 1st of June. In my return to work notification it stated that my employment terms would be the same as they were prior to me being furloughed. Prior to being furloughed I was on a monthly performance based bonus scheme paid quarterly.
I asked for clarification as to which package I am now working, the previous bonus package or the new salary, the response was "you know the company can change your terms don't you?" We're due to have a meeting to discuss tomorrow.
There is a clause in my contract stating that terms can be changed which is fine but surely it can't be done retrospectively? Am I supposed to be given notice that my salary (including bonuses) would be reduced?
I'd like to point out that I work for a small company and it is doing very well financially (we're set for a very good month, last month was also very good) and investing in other parts of the business including pay rises for some employees.
Am I wrong to feel a bit shafted at the thought I may be on less money now than I was prior to being furloughed despite the company doing as well as they were prior to lockdown?
Thank you
Sounds like they haven't actually said what it is they're doing?
While I'd be suspicious, see what they actually say before kicking off about it.
I was annoyed that this year's pay rise for people on my pay scheme was half that which those on the other scheme were offered... but they rejected the offer to try and play hardball, then Covid happened, and now they're getting nothing.
While I'd be suspicious, see what they actually say before kicking off about it.
I was annoyed that this year's pay rise for people on my pay scheme was half that which those on the other scheme were offered... but they rejected the offer to try and play hardball, then Covid happened, and now they're getting nothing.
Before you were furloughed, your terms were salary X and pay rise Y coming into effect 1st May. So, if you're now on those terms, you should have had the pay rise. If they're saying they'll take you to terms before THAT, they should be specific on from what date the terms apply.
Your remedy is a different matter, and depends on your contract (IANAL).
Your remedy is a different matter, and depends on your contract (IANAL).
eybic said:
I'm not 100% sure TBH, they don't give a s
te about employees so I'm still undecided, I just wanted clarification as to what they can actually do.
Well, they can reduce your salary which would be a change in the contract. You can then accept or reject that unilateral change..... te about employees so I'm still undecided, I just wanted clarification as to what they can actually do.moles said:
Can you do anything if you don’t accept the new changes to the t&c’s?. Do employees ever win at employment tribunal in situations like this?.
Seemingly it depends on how things have changed, if the employee is worse off and the employer hasn't offered any kind of sweetener then it wouldn't look favourable for them, it can be classed as constructive dismissal.Jasandjules said:
Well the answer to this falls mainly to what you intend to do about it in the event they seek to renege upon the terms.
eybic said:
To update this, my ghast is flabbered.
I have been given the rise I was originally offered, I was told that they realised it was a formal offer and they didn't want to rescind on it causing an unhappy employee, thanks for the advice though
Well that's a pretty good result I'd say! I have been given the rise I was originally offered, I was told that they realised it was a formal offer and they didn't want to rescind on it causing an unhappy employee, thanks for the advice though
eybic said:
Seemingly it depends on how things have changed, if the employee is worse off and the employer hasn't offered any kind of sweetener then it wouldn't look favourable for them, it can be classed as constructive dismissal.
Glad you got the result that you wanted OP - must have been a stressful 24 hours In relation to your last point I think Employers can change contractual T&Cs without offering any sweeteners.
moles said:
Can you do anything if you don’t accept the new changes to the t&c’s?. Do employees ever win at employment tribunal in situations like this?.
Yes you can resign and claim Constructive Dismissal. And yes people have won on that basis. Jasandjules said:
Well the answer to this falls mainly to what you intend to do about it in the event they seek to renege upon the terms.
However it is important to resign promptly to prevent being deemed having accepted that contractual change (frequently objecting etc may be sufficient in some circumstances).
moles said:
What about if the union agree to the new t&c’s but you don’t personally can you still resign and go for CD on an individual basis?.
I don't think you can. This happened at a couple of places where I worked. The entire organisation went through a Job Evaluation process (some people got increases, most got decreases). Obviously those whose pay went down weren't happy and threatened various courses of action. But as long as the Organisation has followed the correct process there isn't anything the Employee can do. The phrase "Some other substantive reason" was mentioned by our HR lawyers.Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff