Can they reduce my wages?

Hi all,

quick question - my company is starting to go through a restructuring process due to the downturn in the construction and property industry. They have informed us that we will be brought in individually over the next couple of weeks and told what our wages will be reduced to. I understand their need to do this, but I'd like to know where I stand in i.e. is it legal for them to just tell me I'll have to take a pay cut? Is it just a question that they can do what they want and if I don't like it, I can leave?

Any info appreciated.

thanks,

M

If they are experiencing difficult trading conditions then they can propose cost saving measures. You have to agree to these measures. You have to consider that pay cuts are probably necessary for the company to stay in business so it's a case of 90% of a loaf being better than no bread (to paraphrase).
I do think that in these situations pay cuts should start at the top and work down, not the other way around.
If you are not happy with what they want (and need) then you can leave but do consider what you will get elsewhere and whatever redundancy entitlement that you have worked up and the fact that any new employer can let you go without cause within the first 12 months.

No an employer cannot reduce your wage without you agreeing to it. If you agree to it then well and good. If you do not agree with a reduction in wage, then the employer will have to either kepp you on the same pay or make you redundant.
When you go into your meeting do make any decisions there and then. Just see what your employer proposes to do and then ask to have time to think about it.
Good Luck

sorry that should read "when you go into your meeting dont make any decisions there and then"

You are under no obligation to take a pay cut.

Purple said:

If they are experiencing difficult trading conditions then they can propose cost saving measures. You have to agree to these measures. You have to consider that pay cuts are probably necessary for the company to stay in business so it's a case of 90% of a loaf being better than no bread (to paraphrase).

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Good advice. I know many people who are taking pay cuts and cuts in take home pay. The economy is not like it was.

rabbit said:

I know many people who are taking pay cuts and cuts in take home pay.

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I'm one of them. That said I will cut my own pay before I ask anyone else to take a cut.

Purple said:

I'm one of them. That said I will cut my own pay before I ask anyone else to take a cut.

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Same here

Thanks guys

They haven't mentioned anything about redundancy which I would probably take if it was offered. I think they're assuming everyone will go along with the cost saving measures. They're being upfront and everything about it so there's no bad atmosphere in work which is good, but at the same time everyone's a bit nervous because no-one knows when they'll be called in. There'd be a lot of people on bigger wages than me so I hope they do reduce wages starting with the highest earning first.

I'm there nearly three years and am longest serving in my section so am not overly worried, I'm just going to wait to see what they say first I think.

Cheers

M