Pay cut letter

valdigre

Hi guys,

We have a pay cut starting from this month.

What happens, if I don't agree to this and will not sign anything?
Can the company fire me just like that?

I work in IT company, permanent position.

Thanks.

Eoin

It appears that there is a conflict between employment and contract law in this scenario, but most people seem to think that they can't enforce this without your agreement.

You won't be fired, but you and/or some colleagues could be made redundant if the company doesn't achieve the savings it needs to.

Is it a substantial pay cut? Is it the first one you've had to take? Is the company in difficulty? I'd think about these questions consider if you really should be doing your bit to keep things going, or if it's an unreasonable request from them.

valdigre

Thank you for your reply.

The thing is, that I am underpaid (I know what is "my" value on the market, in terms of experience, knowledge etc) and that is why I do not agree to take the hit.

The cut is given to everyone throughout the company and the company has worse sales that some time ago, but I do not feel responsible for it and I was underpaid back when it was performing OK. Not to mention, that the country's next budget could make the income even smaller....

I was just curious what happens, if I don't return it signed, it is a change in contract to which I do not agree, that is it.

Eoin

Well, you know what to do if you think you can get more money elsewhere! It might not be your fault for the poor sales, but I think it's generally fairer to do them across the board (but increased cuts for people on more money).

That might be for another thread though. From what I understand, they are on shaky ground from a legal perspective if you don't sign it and they implement the cut anyway - but as I said, then they might look at more drastic measures.

AARRRGH

Does your contract say they can alter your salary?

valdigre

AARRRGH wrote: »

Does your contract say they can alter your salary?

Damn it, don't have it with me now so I don't know... I don't know what is stated in standard contracts but I would guess, that mine contains things that are standard for the market?

Maglight

valdigre wrote: »

Thank you for your reply.

The thing is, that I am underpaid (I know what is "my" value on the market, in terms of experience, knowledge etc) and that is why I do not agree to take the hit.

If you know you are underpaid, why didn't you do something about it before the market deteriorated? You could have moved to a better paid job if your experience and knowlege are as good as you say.

Irrespective of what bench mark salary reports say, you are only worth as much as the market will pay for you. And every indication is that salaries in the private sector are way down. If the company is struggling and sales are down, they have to balance their books. Our company took a pay cut last year. It was painful for everyone, but preferable to more redundancies.

So no, you don't have to accept a pay cut. But if the company really needs to save money they will make the savings somewhere else. And who knows, it could be your job that goes.

ravydavygravy

I suppose the question is - can you afford to refuse the pay cut and run the risk of losing your job altogether (if they implement redundancies to makeup for the shortfall in savings, you can be guaranteed you'll be then top of the list...)

Remember - in a recession, any work is good work. If you hang on to a job, you'll be alright.

valdigre

I didn't know I was underpaid from the beginning, I have learned that not so long ago.
Other reasons occurred later, but no matter.

I am not concerned about being redundant, as this would give me the best reason to look for a new job I guess...

Just wanted to know what are the possible consequences, so I guess redundancy is the only one.

Thanks guys.

messrs

what does ur contract say?

valdigre

messrs wrote: »

what does ur contract say?

I will check it when I get back home and report back.

Xcellor

valdigre wrote: »

I didn't know I was underpaid from the beginning, I have learned that not so long ago.
Other reasons occurred later, but no matter.

I am not concerned about being redundant, as this would give me the best reason to look for a new job I guess...

Just wanted to know what are the possible consequences, so I guess redundancy is the only one.

Thanks guys.

Why not take the paycut and look for another job. Giving up a job at this point in time is madness. Unless you are inline for a big redundancy payout... Its much easier to find a job if you have one.

Money is only one aspect of a job, you have to think about what experience you are getting, do you like your job? Also remember if you got another job you may have to move, your travelling expenses may increase. You may be better off staying where you are!

valdigre

Xcellor wrote: »

Why not take the paycut and look for another job. Giving up a job at this point in time is madness. Unless you are inline for a big redundancy payout... Its much easier to find a job if you have one.

Money is only one aspect of a job, you have to think about what experience you are getting, do you like your job? Also remember if you got another job you may have to move, your travelling expenses may increase. You may be better off staying where you are!

OK, I found nothing directly related to pay cuts, only one thing:

- Changes to contract will be notified to me in at least 1 month in advance and need my signing/consensus.

The redundancy payout I would get is more than enough for me, would let me live 2-3 months unemployed but other than that, I am not afraid to be redundant.

I have taken into account other costs related to changing work but even if they level with what I get today, I still could find some other work with better perspectives as for self development etc.

Thanks for the help guys.

Maglight

But you may not be the one made redundant Valdigre. Maybe your role is required and it will be some other poor unfortunate who gets let go.

And before you say it, I know. If your role is so important then they shouldn't be cutting your salary. But life isn't fair and if the company is struggling then they have to make cuts. Sometimes very difficult ones.

Best of luck anyway. I hope it works out well for you.

Massive Muscles

Maglight wrote: »

But you may not be the one made redundant Valdigre. Maybe your role is required and it will be some other poor unfortunate who gets let go.

And before you say it, I know. If your role is so important then they shouldn't be cutting your salary. But life isn't fair and if the company is struggling then they have to make cuts. Sometimes very difficult ones.

Best of luck anyway. I hope it works out well for you.

Either he recieves no pay cut or he recieves redundancy. Win, win scenario.

AARRRGH

Massive Muscles wrote: »

Either he recieves no pay cut or he recieves redundancy. Win, win scenario.

Not necessarily. Statutory redundancy is quite small and not everyone qualifies for it.

You have to have been continuously employed by the same employer for over two years, and you're only entitled to a maximum of €1200 for every year of service. There is also a (maximum) payment of €600 added onto your entitlements.

So if you've been employed for 3 years and you earn over €600 per week, you get €4200.

That's not a huge amount of money considering there are few jobs out there.

Also, you can only claim a tax free redundancy once.

valdigre

Massive Muscles wrote: »

Either he recieves no pay cut or he recieves redundancy. Win, win scenario.

That is what I figured out, at least, this is how it looks to me...

As for number of jobs out there, I know there is plenty of work in IT, so I am not that concerned about this at the moment.

Maglight

well so long as you are ok that's all that matters then