Asked to take cut in benefits

urbeau

My employer is proposing to cut benefits by approx 10% for all staff from January 2010. This to involve pay cut, cut in employer pension contribution and cut in VHI contribution.

I work in consulting and am a very high biller - always well in excess of 90% of available days are billed. With same company 14 years.

The company is saying that these benefits will come back when company returns to profit. They are offering a sweetner payment this December and next December.

I have a written contract which confirms my current arrangements and I expect that in early December the company will write to us asking us to sign something in order to get the sweetner which will change our contractual terms. By the way we have been told that the 2 sweetner payments will not add up to the value of the cuts.

I want to reject their offer but dont know what the likely consequences of this might be (ok, I can guess but I am assuming some level of reasonableness given length of service and earnings!)

Another point of note might be the fact that in my current assignment I have been deployed for 2 years with same client at good day rate. This agreement runs for 6 months at a time and next one is up at end of year. It is already racing certainty that I will get another 6 months and to be honest I expect to be here for another couple of years as I have an excellent record of delivery and have high profile with senior management.

Please note that I am not looking for legal advice but merely to see if anybody has been in same boat as me and to find out what they determined their options to be and how they handled it.

seamus

There's a point of conflict between contract law and employment law.

Employment law says that an employer is entitled to change the terms of your employment contract (including remuneration) provided that you receive sufficient notice. Your agreement is not required.

Contract law says that where a contract is to be changed, all parties to the contract must agree to that change.

Most people I've discussed it with assume that contract law takes precedence.

However, nobody wants to talk legal to their employer. I would suggest broaching the topic now instead of when it arises. Find out who would be involved and ask them straight out what would happen if someone refused to take the cut in benefits. They can't fire you for asking the question, and they should have the answer to the question ready to roll of their tongue.

urbeau

Much appreciated.

Eoin

urbeau wrote: »

Please note that I am not looking for legal advice but merely to see if anybody has been in same boat as me and to find out what they determined their options to be and how they handled it.

I'm not in the exact same position, but we were asked to sign a letter agreeing to have our pay cut. I suppose we could have gone legal and refused to, but it saved a few people having to be let go.

The Citizens Information website also states that they can't do this without agreement from all parties.

urbeau

eoin wrote: »

I'm not in the exact same position, but we were asked to sign a letter agreeing to have our pay cut. I suppose we could have gone legal and refused to, but it saved a few people having to be let go.

The Citizens Information website also states that they can't do this without agreement from all parties.

I feel I am going to have to follow suit and do what you guys did. I do not wish to get involved in legal action nor do I want my employer to take steps to marginalise me e.g. placements away from home or work outside of my skill set.

How Strange

My employer wanted to change our working hours up to 40. The legal advise they got from the legal team was that they would have to present it to all employees and there would have to be 100% consensus for it to be changed. If one person said no then it couldn't be implemented.