Pay Cuts

JezebelWexford

Hi All, Just wondering how far can we be pushed? Since June, I was first asked to take a 20% pay cut which I agreed to on the basis that it would be reviewed after 3 months and increased if we as a company are doing better. The review never happened then about 6 weeks ago I was put down to 3 days plus a further smaller pay cut. Now it seems my boss is planning a further pay cut! He has advised me that if I find something else I should take it, but I know that would suite him as I have been with the company for 5 1/2 years and he would not have to pay me any redundancy. Unfortunately the company was very small when I started and I have no written contract of employement but surely I still have some rights? I can not afford another pay cut or reduction in hours! Anyone any ideas as to whether there is a limit on the amount of cuts we are asked to take? Or any other words of wisdom regarding my situation would be much appreciated

Mrs OBumble

You could try telling him that you're not willing to agree to this latest cut, therefore he has to make you redundant now.

Apart from that, not much you can do except job-hunt vigourously. It may be that the company is definitely going down the tubes, and that he's being kind by giving you as much notice as he can.

JezebelWexford

Thanks a mill for your reply. I have thought about that but if I am concerned that if I refuse and he changes it anyway and doesn't make me redundant where do I go from there?

Mrs OBumble

Yes indeed. 'Tis a very tricky situation.

If you think he has the dosh to pay the redundancy, you could threaten to sue for constructive dismissal. But this takes lawyers and unless you're in a union it can get expensive.

And if the company really is on its last legs, then he probably won't have money to pay it - or paying it will finish the company off. If you hang in to the bitter end, then the state ends up paying the redundancy (since he can't). But you have to suffer through the last days/weeks/months.

All in all, your best hope is probably some serious job-hunting.

Sleepy

He can't legally change your salary without you signing off on it. Since you don't have a contract and he presumably hasn't given you salary ammendment or contract ammendment forms to sign on your last two cuts you have him over quite a few barrels here.

Ask him to make you redundant and warn him that if he won't you'll sue for all the various breaches of employment law he's already committed. Judging from his laxness on the contract issue and how he's handled paycuts to date I'd imagine he's probably breached a few of the other laws... have you been getting payslips?

_Kooli_

Once you agree to the first salary cut you are making your bed.
My friend owns a company and has not decreased his own drawings or profits. But he is cutting his staffs wages.
He doesnt have to, but everyone is so scared now that they will grasp a pay cut with both hands, instead of taking time to think about it and then looking around at other job opportunities.

jingle bells clare

The company I work for imposed a pay cut 4 years ago...verbally. we were informed that this was a temporary measure......yet none of the employees signed a contract as no one agreeded to this pay cut.....but every week for the past 4 years our company is taking 50 euors off 60 staff each week...adds up to a lot of cash dont you think.....the management have gone off on 3 exotic holidays each year since and have bought 8 more company cars since 2008........And they tell us there are money problems and that they cannot review the pay cuts.......I think companies are using this recession for an excuse to use and treat their hard working staff with no respect what so ever.....

Denerick

jingle bells clare wrote: »

The company I work for imposed a pay cut 4 years ago...verbally. we were informed that this was a temporary measure......yet none of the employees signed a contract as no one agreeded to this pay cut.....but every week for the past 4 years our company is taking 50 euors off 60 staff each week...adds up to a lot of cash dont you think.....the management have gone off on 3 exotic holidays each year since and have bought 8 more company cars since 2008........And they tell us there are money problems and that they cannot review the pay cuts.......I think companies are using this recession for an excuse to use and treat their hard working staff with no respect what so ever.....

There is absolutely no doubt in my mind that the workforce of this country are been completely and utterly exploited whilst we continue to toil for the enrichment of a tiny golden circle virtually untouched by recession. Sooner or later society will react to this inherent injustice. Hopefully sooner.