Hello,
this is a question to those in the know about contract law. I work with a multi-national IT company. As part of the middle management team, I was recently called into a meeting, where it was explained that we were being asked to change part of our payment terms. We get paid paid 90% of our wages in 12 monthly instalments, and the other 10% portion is paid quarterly on achievement of objectives that are set down at the beginning of each quarter. whilst this 10% is not guaranteed, across our department, the estimate is that 98% of this 10% has been paid over the last 6 years that the compay has been in operation in Irelend.
The new payment term that we awere being asked to accept was a reduction of this objective payment to 5%, with the other 5% payable yearly, upon reaching a target set down by the executive team. This target is based on revenue and cost. It also can be over-achieved up to 20%, however based on our current performance, it is extremely unlikely that we will make even 1%
In any event, we were firat asked to sign a letter consenting to this change of contract. When asked would I sign it, I said no. Discussions were held I believe with the lawyers of the company, and it was decided that there would no longer be a letter, but that the change to terms and conditions was being implemented, without any consultation.
It is worth noting that this change, whilst supposed to affect everyone equally, is only being implented for roughly 25% of the staff in the Ireland site.
My question is, can the company do this? Is this legal?
Thanks,
PK
this is a question to those in the know about contract law. I work with a multi-national IT company. As part of the middle management team, I was recently called into a meeting, where it was explained that we were being asked to change part of our payment terms. We get paid paid 90% of our wages in 12 monthly instalments, and the other 10% portion is paid quarterly on achievement of objectives that are set down at the beginning of each quarter. whilst this 10% is not guaranteed, across our department, the estimate is that 98% of this 10% has been paid over the last 6 years that the compay has been in operation in Irelend.
The new payment term that we awere being asked to accept was a reduction of this objective payment to 5%, with the other 5% payable yearly, upon reaching a target set down by the executive team. This target is based on revenue and cost. It also can be over-achieved up to 20%, however based on our current performance, it is extremely unlikely that we will make even 1%
In any event, we were firat asked to sign a letter consenting to this change of contract. When asked would I sign it, I said no. Discussions were held I believe with the lawyers of the company, and it was decided that there would no longer be a letter, but that the change to terms and conditions was being implemented, without any consultation.
It is worth noting that this change, whilst supposed to affect everyone equally, is only being implented for roughly 25% of the staff in the Ireland site.
My question is, can the company do this? Is this legal?
Thanks,
PK