# pay cut by 10% is this legal



## ppk (3 Feb 2010)

my partner works for a large independant bookmakers and has been informed that their pay is to be cut by 10% from march .their hours of work are to remain the same,in the last year all fringe benefits such as tea money cleaning money extraordinary travel expenses have been abolished amounting to another 10%,i was wondering if it is legal for an employer to do this with no consultation or agreement(theres no union)or do they have to offer something to compensate workers(time off etc).also they have agreed to a meeting next week with one staff member from each shop,should the staff have someone knowledgable to speak on their behalf(eg hire a solicitor).thanks for your patience any replies would be very welcome regards


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## Purple (3 Feb 2010)

They can't change the terms and conditions of employment without the agreement of the staff.
BTW, what's tea money?!


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## number7 (3 Feb 2010)

Sounds to me as if they are following a proper course of action.
1. inform the staff of proposed changes to t&c 
2. Meet with staff rep from each shop to outline details and address concerns.
3. implement plan.

And dont be fooled they can change the t&c of staff without agreement but it may lead to a dispute which they might lose but having followed the correct proceedures they stand a average chance of not losing especially if they can show that the pay cut was essential to the survival of the business and that it doesnt in any way break the law, like people working below the min wage etc.


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## Purple (3 Feb 2010)

number7 said:


> Sounds to me as if they are following a proper course of action.
> 1. inform the staff of proposed changes to t&c
> 2. Meet with staff rep from each shop to outline details and address concerns.
> 3. implement plan.
> ...



I agree with that. i'd add that if the cuts are necessary for the survival of the business then the staff should accept them.


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## Mpsox (3 Feb 2010)

Under the payment of wages act, it's illegal to reduce someone's pay without their permision. Problem is, if you don't agree to it, and the company needs to reduce it's costs to survive then if they can't make their savings one way, then they'll make it another way, which usually means redundancy.


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## shipibo (3 Feb 2010)

To answer your question, NO



*1 Reduction in salary and/or benefits
*

It is a basic principle of contract law that one party to an agreement cannot unilaterally vary a term or condition of the contract to the detriment of the other without the other's consent. While some contracts of employment contain contractual provisions giving employers a discretion to vary the contract (sometimes unilaterally), it is arguable whether or not a court would enforce this where to do so would mean that the employee would be at a significant disadvantage, which would clearly be the case in relation to a reduction in pay. 


If employer presents books to you, and it is apparent that business is unsustainable, then you have a choice to make ....


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## ppk (3 Feb 2010)

thanks to all for your replies ,as for the employer presenting books to the staff i think thats unlikely,the business is registered as a sole trader despite having over 60 shops and over 200 staff


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## number7 (3 Feb 2010)

crumdub12 said:


> To answer your question, NO
> 
> 
> 
> ...


 
Exactly my point just put better, "it is arguable whether or not a court would enforce".

I am not saying it is legal, just that in practice they can do it and to have it over turned is a major issue that a lot of employers bank on being a cause to far for their non unionised staff.

Like some of the other posters I think that a pay cut of 10% may be the lesser of two evils in this climate.


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## chlipps (3 Feb 2010)

sign of the times... everyone is taking pay cuts and we have to get on with it


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## shipibo (5 Feb 2010)

number7 said:


> Exactly my point just put better, "it is arguable whether or not a court would enforce".




Context this was taken from is, if employer unilaterally changes pay, court would not enforce .... not the point you were making

http://www.tribune.ie/news/article/2009/apr/19/employees-entitled-to-sue-over-wage-cuts-expert-wa/


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## Deiseblue (5 Feb 2010)

chlipps said:


> sign of the times... everyone is taking pay cuts and we have to get on with it


Not correct , Bank of Ireland , AIB , ESB , Penneys amongst others have paid the first tranche of 3.5 % due under the National Wage Agreement towards 2016.
Recent figures suggest that 1/5th of private sector companies have paid the 3.5% referred to above.


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## Purple (5 Feb 2010)

Deiseblue said:


> Recent figures suggest that 1/5th of private sector companies have paid the 3.5% referred to above.



Can you post more info on that?
Do you know if semi-states are counted as private sector in this context?


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