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The company must be aware that if, as an employer, it reduces an employee`s salary without their consent, the employee is entitled to the following: it is illegal in the UK to apply a pay cut without consent. Shân Evans of People Management explained: “Legally, an employer cannot impose a pay cut on its employees if they have an employment contract that includes details about their wage rights.” That decision must therefore be taken by the workers concerned. They are not required to give their consent and they could take legal action to prevent such a change. That is, if your employer wants to reduce your salary, they must first ask for your permission. You can refuse a pay cut, but you risk terminating your contract altogether. The employee or employer could also agree on a gradual reduction in wages with the possibility of a review and increase in the future to try to encourage the employee to stay and maintain the relationship. Any agreement between the parties must be recorded in writing in the event of a dispute over the agreement at a later date. If you earn more than £2,500 a month, your employer can “top up” your salary, but even that is not forced. Thus, if you agree to a change in your terms, . B such as a reduction in wages or hours of work, you may be asked to sign a letter or other contractual document to signal your agreement to the changes. If you disagree, your employer may, in the current circumstances, believe that there is no option but to seek other avenues, including dismissal or possibly termination of your employment contract under the current conditions and offering the new conditions as an alternative. After the dismissal, the employer can then offer the employee a new employment contract that reflects the reduced wage level. Another approach would be for your employer to terminate your employment contract by sending you contractual notice of termination, and then immediately offer you a new contract at a lower salary. You can then take legal action again for unfair termination, even if you have accepted the new contract.
If your employer decides to reduce your salary and working hours without your consent or the right reserved in your employment contract, you have the following options: In the meantime, some employees have been put on leave at my workplace, which I understand means that they will not work at all, but will receive 80% of their salary through the government program. If your employer feels optimistic, they could simply end your employment relationship and take advantage of their opportunities with a subsequent lawsuit in the labor court. They would invoke “another substantial reason,” which is one of the fair grounds for dismissal – provided they can prove their case. You would have the right to seek unfair dismissal if you qualify. To help you decide what to do, This is Money sat down with Laura Conway, Senior Partner at Wedlake Bell, and James Medhurst, Senior Partner on Royds Withy King`s Employment Team, to find out what they think of your situation. Employers should not cut their employees` wages without telling them. Wage reductions cannot be retroactive. When companies do, they are presumed to have violated their contracts with their employees. Nor may wage reductions and reductions in working time be made for discriminatory reasons on the basis of the protection status of the workers concerned. Wage cuts are also not allowed if they lower your income below the minimum wage. The employer would have to prove that it was not related to the transfer or that there was an economic, technical or organizational reason for the change. Otherwise, wrongful dismissal will occur automatically as a result of the change in salary.
Workers must receive their agreed wages for the work they have already done. This means that employers are required to notify their employees if they intend to reduce their wages, and workers must either accept the cuts or quit their jobs. The only exception is if your employment contract reserves the right to vary your salary and hours, but even then such a deviation should be reasonable and for good business reasons. Any decision made by companies due to the consequences of the coronavirus is likely to be considered “appropriate” if your employer invokes a change clause in your contract. However, your employer should proceed with caution as there is no guarantee that the courts will review this appropriate conduct. Workers who have collective agreements or individual employment contracts are protected from wage cuts as long as these agreements are in force. If you work under a contract or collective agreement, your employer cannot arbitrarily reduce your salary or hours of work. .