Take a 20% Pay cut or Leave

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lucylu

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My husbands boss was told his staff yesterday to take a 20% pay cut or leave.
Redundancy was not an option and he will not put them on a 3 day week.

It would not be a highly paid job anymore as all overtime, benefits, pensions have already been cut.
My husband would prefer to stay working that to walk but for others they would be better off on the dole.

Is the bosses move legal?
 
No, he cannot force staff to take a pay cut against their will as it is a material alteration to their terms and conditions and if he does do so, the employee can resign and take a case for unfair dismissal under the Unfair Dismissals Act. He may also have a case via a Rights Commisioner under the Payment of Wages Act.

Bear in mind as well that an employer cannot legally reduce wages below the Minimum wage level. He and is colleagues should also bear in mind that if they "leave" as opposed to being made redundant, this may have implications for any SW payments if the SW perceive this to be a resigination as opposed to redundancy

I'm assuming that they are in permanent roles and not temp contracts
 
Thanks Mpsox

Yes these are permanent positions.

One guy was better off by €40, working a 40 hour week in than being on the dole.
The company is a steel engineering company so its hard manual labour.
 
He can't fire anyone for not taking the cut, and if it's illegal to reduce the wages without permission.
 
Hi Lucy,

They have to get your permission as the other posters have said. This might help, http://www.irishstatutebook.ie/1991/en/act/pub/0025/sec0005.html#zza25y1991s5

My own employer had no idea what their legal obligations were and have gone ahead and paid us -40% of our pay without written approval (they did provide a letter asking us to agree to it once we pointed out the obvious; some may have signed it, i havent).

I hope things will work out.

Does anybody know, without having the benefit of a union, how quickly these kinds of issues are resolved by the Rights Commissioner?
 
Contact a [broken link removed]at the Labour Relations Commission to discuss the details.
Employer is really handling this very badly.
 
As it appears that your husband's boss is acting unreasonably and indeed illegally perhaps the employees should consider joining a union.
ICTU provide a helpline - free phone 0818 300 900 every day mon to fri 9 am to 9 pm and sat 9 to 5
 
famed45 said:
Hi Lucy,

They have to get your permission as the other posters have said. This might help, http://www.irishstatutebook.ie/1991/en/act/pub/0025/sec0005.html#zza25y1991s5

My own employer had no idea what their legal obligations were and have gone ahead and paid us -40% of our pay without written approval (they did provide a letter asking us to agree to it once we pointed out the obvious; some may have signed it, i havent).

I hope things will work out.

Does anybody know, without having the benefit of a union, how quickly these kinds of issues are resolved by the Rights Commissioner?
Click to expand...

If he lied to them to get them to sign it then its not worth the paper its written on.

Ask for the terms of this wage cut offer in writing, including the part about not getting redundancy if they refuse.
 
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