Wage reduction

Dawedge

My company announced restructuring and minor wage reductions at the beginning of February In order to save from redundancies. One week later they announced lay offs.

They have a recent history of laying people off as opposed to making them redundant. Difference being if your laid off you have to ask for redundancy straight away or at end of lay off period i.e. You voluntarily left your position, and you cannot get income protection/mortagage protection to pay out.

This reason along with the fact I no longer wish to work for this company, I refused to sign as my role was no longer there and they therefore have a the option of making me redundant.

I got paid last night and they have reduced my wages without my permission, what is my position/rights in this situation?

Dempo1

Your in a pickle here unfortunately, companies and particularly in the current climate can and will introduce pay reductions. Obviously you do not have to accept this decision but i think you will find it difficult to argue the case. Redundancy is only an option if the Position (Not the employee) is no longer tenable, for example your position could not be filled or reinstated for a period of two years for redundancy to be applicable. Companies can claim back 60% of the net cost of redundancy so i doubt this is a factor. You are correct about leaving voluntarily and being penalized but to be Honest and i know its not what you want to hear, you will have to grin and bare it or alternatively look for another Job. On a final point, you state the company made announcements on salary reductions bu then said they reduced your pay without notice? i am confused? the company must inform you in writing about any reductions, deductions etc from your pay! did this happen?

Dawedge

We were told about the plans, but not exact details on the 1st Feb. I received a letter with my exact details which they required me to sign on 16th Feb (Do I not need to sign for change in terms and condition of my contract?). My position/role is gone and a new similar role is there instead, however this is a change in terms and conditions to my contract.
However I told them I did not wish to be laid off and would rather a clean break and would not be signing. They had told me a week earlier that is business did not pick up I was one of the next to be let go. Business is not picking up.

This is not a bitter employee pos, as I know such down turns are part of the business world..... This is a doing/finding out what’s best for me post.

It is not about the money either... I am reasonably well paid and there are jobs in my profession out there. However wage reduction, along with cancellation of pension contributions and limiting health insurance to employee only (i.e. not family members) were sold on the basis of no more lay off's, like I said one week later there was lay offs and threats of more. This is one of a number of lies/half truths we have been told.

Dempo1

Technically your terms and conditions of employment can not be changed but the lay of the land has somewhat changed and most procedures are gone by the wayside in the current climate. My situation was one of having to firstly reduce employees wages and hours and this was followed by ten redundancies. I was a General manager and also an employee. I obviously consulted widely and openly on any decisions but to be brutally honest no one including the owners had little options open to them.

I am unsure if there is general unhappiness at your company but clearly your employer is giving you the options, one being resigning the second putting up with whats on offer. I can name literally hundreds of companies taking the approach yours seems to be taking. You can go to HR, senior managers, outside agencies, Unions etc but the reality is your being kept in employment and thats really all that will count in any action you may wish to take. Sadly the labor laws in this country have essentially been torn up and abandoned during this serious economic down turn.

Dawedge

Thank you for your advice/experience....