View Full Version : Salary cuts
Oh wise boys and girls...
I have a meeting tonight where i am pretty sure the boss man is going to say that unless things improve dramatically quickly he is going to enforce salary reductions.
Where do i/we stand legally? Does he have to give a certain amount of notice? does it have to be for a specific period of time or can it be ongoing until he decides otherwise?
No idea - but can you bargain for stock options or something to make the pill easier to swallow?
Kate Moss
17-03-09, 02:19 PM
my understanding is that both parties have to agree to the change in contract rather than it be enforced. Not 100% on that though.
madness
17-03-09, 02:21 PM
They'll probably say it's wage cuts or redundancies!
They'll probably say it's wage cuts or redundancies!
We've had both.
At our place we had to agree to and sign a new contract.
Luckypants
17-03-09, 02:33 PM
my understanding is that both parties have to agree to the change in contract rather than it be enforced. Not 100% on that though.
IIRC both parties have to agree, but this can be enforced after 6 months if negotiations do not reach a conclusion. Been on the receiving end of that, but not an enforced salary cut.
Hope it goes OK Keith.
They'll probably say it's wage cuts or redundancies!
this is indeed wholly possible. thats said i suspect it'll be cheaper to cut salaries, there's 10 of us who work here 6 have service of in excess of 8 years, that'll be a big wedge paid out...
this is indeed wholly possible. thats said i suspect it'll be cheaper to cut salaries, there's 10 of us who work here 6 have service of in excess of 8 years, that'll be a big wedge paid out...Not really. If they take the statutory minimum of redundancy which they can, and thats something like £330 per year of service! Sorry, you probably didnt want to know that!
Not really. If they take the statutory minimum of redundancy which they can, and thats something like £330 per year of service! Sorry, you probably didnt want to know that!
+1. I 've heard of people with many years of service getting very little unfortunately. I think the big redundancy payouts are more acts of good faith - they legally don't have to give very much.
That said, I hope it all works out well :-|
Not really. If they take the statutory minimum of redundancy which they can, and thats something like £330 per year of service! Sorry, you probably didnt want to know that!
no, i didnt but its handy to know! wouldnt want to get aggresive in the meeting and say go on then big pants, make me reduntant...
Just a thought Keith.....but, DO THEY KNOW WHO YOU ARE? Keithd! Doesn't that mean anything to them.
Just a thought Keith.....but, DO THEY KNOW WHO YOU ARE? Keithd! Doesn't that mean anything to them.
Aye..... he's a legend alright ;-)
Just a thought Keith.....but, DO THEY KNOW WHO YOU ARE? Keithd! Doesn't that mean anything to them.
the words trump and card are in full effect....
i'll listen to him, hear what he has to say, if he gives me the sir alan pointy finger i'll play my aces.
Right the company I work for are going through this right now.......we have just passed day 64 of the statutory 90 day employee consultation period.
We are currently going through consultation for a 12.5% pay cut.
Yes they can legally do it.
Nobody HAS to agree to it, if no one agrees to the pay cut at the end of the consultation period then they can issue notice of termination of your current contract.
If they do this they then HAVE to offer you new employement at the new lower rate of pay.....if you then choose not to accept this, then you no longer work for the company.
They do not have to pay redundancy in such a case.
Any redundancies following pay cuts are calculated at the lower rate of pay......pensions payments etc and other benefits are effected also.
They can unfortunately legally do this as our company employee representatives have been given independant legal advice whom have confirmed this.
Essentially the sceptic in you may think this is just a way to reduce their redundancy costs.
+1. I 've heard of people with many years of service getting very little unfortunately. I think the big redundancy payouts are more acts of good faith - they legally don't have to give very much.
That said, I hope it all works out well :-|
Big redundancy payout are usually handed out during restructuring when they are looking for voluntary redundancies.....nobody would accept voluntary redundancy on a statutory redundancy payout.
Right the company I work for are going through this right now.......we have just passed day 64 of the statutory 90 day employee consultation period.
We are currently going through consultation for a 12.5% pay cut.
Yes they can legally do it.
Nobody HAS to agree to it, if no one agrees to the pay cut at the end of the consultation period then they can issue notice of termination of your current contract.
If they do this they then HAVE to offer you new employement at the new lower rate of pay.....if you then choose not to accept this, then you no longer work for the company.
They do not have to pay redundancy in such a case.
Any redundancies following pay cuts are calculated at the lower rate of pay......pensions payments etc and other benefits are effected also.
They can unfortunately legally do this as our company employee representatives have been given independant legal advice whom have confirmed this.
Essentially the sceptic in you may think this is just a way to reduce their redundancy costs.
cheers capital g.
again not the answers i was hoping to see, but essentially not far from what i was expecting. lets hope it doesnt come to it. that said i'd rather have 10% off what i earn now rather than the big elbow
Sadly its never good news.
Play your cards close to your chest. We have been told the pay cut will be across the board.
Edit: Thought best to delete the last bit you never know whos reading lol
stewart-250
17-03-09, 10:15 PM
If the company needs to save money because there is not enough work for its employees then you could ask to be put on reduced hours rather than a wage cut. At least thay way you get something out of it ie time off. Also if you can get reduced hours rather than a wage cut you can guarantee your money will go back up again when things get better again.
Having gone through many consultation periods over the last few years I can confirm that what G said in the prev post is totally correct.
Best of luck
Stewart
keith_d
17-03-09, 11:01 PM
Accept 10% pay cut in exchange for every other Friday off.
After all, if there's not enough business to pay the salaries there's not enough business to keep you occupied 100% of the time. So on Friday only half of you turn up each week.
Hi depending on age her is what they must pay minimum after 2 years
0.5 week's pay for each full year of service where age during year less than 22
1.0 week's pay for each full year of service where age during year is 22 or above, but less than 41
1.5 weeks' pay for each full year of service where age during year is 41+
keith_d
18-03-09, 03:02 PM
Hi depending on age her is what they must pay minimum after 2 years
0.5 week's pay for each full year of service where age during year less than 22
1.0 week's pay for each full year of service where age during year is 22 or above, but less than 41
1.5 weeks' pay for each full year of service where age during year is 41+
Yes, but the weeks pay is based on a notional (or should that be fictional) figure which is much lower than most peoples' real weekly pay.
Hi depending on age her is what they must pay minimum after 2 years
0.5 week's pay for each full year of service where age during year less than 22
1.0 week's pay for each full year of service where age during year is 22 or above, but less than 41
1.5 weeks' pay for each full year of service where age during year is 41+
That is based on a maximum weekly pay of £350 (According to the direct.gov website)
That is based on a maximum weekly pay of £350 (According to the direct.gov website)
...and it's right.
Most statutory redundancy payments are very low. The gioverbnment is thinking about increasing them, uty they won't do it cos if an employer is insolvent then the government has to pay.
That is based on a maximum weekly pay of £350 (According to the direct.gov website)
Yes sorry forgot to mention that, and only up to 20 years employment also, but give a bit of an idea what to expect.
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