# Employer is changing the employment contract/practices



## irash (28 Oct 2008)

I have been working for a small (10 employees) company for almost 8 yrs
The employer tells us that due to the financial losses that his business suffered, he has no option but to reduce our hourly pay AND to cut the hours untill further notice, which effectively cuts my take home wage in a half. The other option given is "if you don't like this, I will stamp your Social Form"
There is nothing in writing about this proposal (I do not have a written contract either), it is only verbal.
I suppose, legally the employer is supposed to go through certain procedures to change my work pay/hours, but this is not what concerns me. I don't really want to fight with him or take him to court over this. I am prepared to accept the canges for a while.
My question is:
IF I decide to step into my employer's shoes and take this cut for a month or two, can this be held against me in the future? In other words, IF I start working these reduced hours at the reduced pay, will this mean that I accepted a new work contract and have no right to demand anything more than that from my employer in the case that he desides not to give me my hours and rate back at the later stage? How can acceptance of this unofficial cut effect my rights should the employer decide to make me officially redundant? 
Any suggestions will be greatly appreciated


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## FutureProof (28 Oct 2008)

If you sign a new contract then you are accepting the new terms, so if you dont agree do not sign. You will not be able to fight back later if you sign now


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## irash (28 Oct 2008)

*Re: Employer is changing the employment contract/conditions*

There is nothing to sign, as I have never had a written contract since I started working for this company 8 yrs ago.
The proposed by the employer changes have not been put in writing either.
Hence the question I have is: 
say, I PRACTICALLY go along with the proposed changes of my work conditions (i.e. go to work only three days a week according to the proposed new rosters AND accept a pay cheque where my hourly rate is just a half of my usual rate) for a few month
Say, my employer's financial sutiation improves later and I ask him for my normal hours and rate. 
Can he then turn back and refuse me on the basis that since I practically accepted those changes, the new (verbally agreed and observed by me) conditions are now permanent.
Worse again, what happens IF the company does go bust in a few month from now: will I be considered a full time permanent employee (this is what I am now), or will my redundancy rights be limited to those of casual/part-time employee (that what my employer is making me into at the moment not giving me any other options)? 
As I said, I dont mind to help out my employer (by accepting less hours and money for some time without asking him to carry out proper procedures required by law for such change of my employment conditions) but I dont want to find myself in the situation when I lose my rights because I PRACTICALLY accepted new conditions (even though I signed nothing)

What should I do?


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## Diziet (28 Oct 2008)

Be clear that casual and part time are not the same thing. If your hours are reduced to part time, you are a part time permanent employee, not a casual one. 

You should not assume you have any right to go back to things as they were. If you are made redundant, redundancy is generally calculated on the current salary, which in your case would be the part time one.

If your employer is in trouble, you would not get much more than statutory anyway.

Have you looked for another job? Aggressive job hunting would be my first reaction if I were in your shoes.


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## Silvergirl (28 Oct 2008)

Could you go and have a chat with him? What you are querying is perfectly vaild and the fact that you are willing to go along with the cuts show that you are being very accomodating to him. 

Maybe it would be best to get the outcome of this discussion in writing to cover yourself? Even a follow up email to him (if you have email in work) re-capping on this might suffice and rule out any potential ambiuity say 6 or 12 months down the line?

It might also be worth calling your lcoal citizens information bureau, who may be able to give you definite answer on your entitlements as regards to the reduced salary and hours impacting any future reduncancy payments. They should also be able to give you deatils on any supplementary benefits you may be eligible for from the social welfare.


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## shipibo (28 Oct 2008)

Your employer cannot unilaterally cut your wages, there must be consent from your side.

You may not have a written contract, but "Custom and Practice" counts, what was normal in your work environment.

He may reduce your hours if business is in trouble ...


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## Purple (28 Oct 2008)

If you think that he is being truthful about trading conditions etc and you are willing to go along with what he wants then ask for his proposal in writing and insist that it is for a defined period only. That way you are in the position of strength if he wants to extend the period.
Do not sign up to anything that means you have to go looking for a return to your current pay and wages when you feel things have improved.

What should really happen is your reduced pay should be deferred ‘till trading conditions have improved or ‘till the agreement has expired (whichever occurs first). The cut in hours can’t be deferred (obviously).


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## irash (12 Nov 2008)

Genuine thanks to everyone, who shared their opinion and experience.
You helped a lot!


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