Terminate Permanent Contract and Re-issue new one??

My employer is threatening to terminate my existing permanent full time contract as I have refused to accept a pay reducation and re-issue me with a new contract with the same terms and conditions BUT with the reduced pay rate. Is this legal? I'm thinking not but what can I do about it?

Susan

No - it is not legal. According to the law you will be deemed to be employed according to your original terms and conditions.