Re: Reinstatement of Pay Reduction

[iandublin2]

Hi,
My wife took a job in March 08 for 33k. She was taking a job nearer to home but the employer offered the rate of 33k so she took the job.
9 months later, all employees were asked to take a 10% reduction. She accepted this as a temporary arrangement subject to review. In Jan 2010 she went on maternity leave.
A person was hired to cover her maternity and my wife returned to work this week.
The person who covered her has been kept on. My wife asked for a reinstatement of her wages to the 33k that is in her contract. They said no. She then asked for a 10% reduction in her hours (which would suit her with collecting our child) and they said no to that too.
Effectively they have unilaterally changed the terms of her contract.
There is no evidence of reduced business activity (given they kept her replacement on and he would be on substantially higher wages due to qualifications & experience)
With the increased taxes and increased petrol costs her wages-in-the-pocket are even less than when she left in 2010.
As far as I can see she is in a win-win situation with regards to making a complaint to a Rights Commissioner.
If they victimise her for this, she could claim constructive dismissal.
If they make her redundant for not accepting the pay cut anymore she could claim unfair dismissal and the burden of proof is on them.
At a minimum would a rights Commissioner obligate them to pay her the 33k rate in her contract?

Thanks in advance

Ian

 

[Nutso]

Has your wife requested to go back to her contracted rate of pay since Jan 2009?

If not, she may be deemed to have accepted the pay cut. The labour relations commission allows for claims but they must be taken within 6 months of the unilateral pay cut taking effect. I'm not sure if your wife will have any comeback at this stage.

Nutso

 

[iandublin2]

Thanks Nutso. The paycut was in Jan 2009. She didn't get a yearly review in Jan 2010 as she was on maternity leave since Jan 1st 2010. So the review yesterday was her first review since the paycut 2 years ago.
In Jan 2009 she agreed to the cut on a temporary basis. So its really only been unilateral since yesterday when they said they wouldn't reinstate it in the review.

 

[Nutso]

Was there anything in writing about this being a temporary measure subject to review? Is there anything in her written contract about an annual pay review? (note that this does not necessarily mean 'pay rise' even if it does mention annual pay review). From personal experience, if it's not in writing, it doesn't exist. The fact that your wife has been on the lower salary for 2 years in my opinion means that she accepted the pay cut.

The only way I think you'll have a case is if the company stated in writing that this was a temporary measure, or if your wife requested updates in writing over the last couple of years to ask when her pay would be reinstated to her previous level. If neither of these happened then I believe you will be fighting a losing battle.

Nutso