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20% Paycut V 4 day week

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  • 03-05-2020 8:15pm
    #1
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭


    Hello,

    Appreciate any help in advance.

    Three things, if asked to take a 20% wage cut, is a counter offer of a 4 day week the same thing? To the company it should be the same result financially, but not in labour terms. However, are there implications for the employee?

    Next option is to agree to the above but work the five days, so your salary remains that same, but you only get paid for the 4 day hours.

    Thirdly, can a company take off holiday days given the current circumstances. Apparently it is quite common now to "remove" 5 days holidays in lieu of being paid over the "lock down", so people don't have to use them in the last half of the year.


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    #2
    Dav010
    Registered Users Posts: 14,001 ✭✭✭✭Dav010


    Sorry for the questions wrote: »
    Hello,

    Appreciate any help in advance.

    Three things, if asked to take a 20% wage cut, is a counter offer of a 4 day week the same thing? To the company it should be the same result financially, but not in labour terms. However, are there implications for the employee?

    Next option is to agree to the above but work the five days, so your salary remains that same, but you only get paid for the 4 day hours.

    Thirdly, can a company take off holiday days given the current circumstances. Apparently it is quite common now to "remove" 5 days holidays in lieu of being paid over the "lock down", so people don't have to use them in the last half of the year.

    You will have to talk about the pay/time cut with your employer.

    In relation to the annual leave, you do not accrue AL during lockdown if you are not working, so if your company is closed for 3 months (quarter of the year), you would loose 5 of your 20 days.


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    #3
    Mrs OBumble
    Registered Users Posts: 25,669 ✭✭✭✭Mrs OBumble


    Sorry for the questions wrote: »
    Thirdly, can a company take off holiday days given the current circumstances. Apparently it is quite common now to "remove" 5 days holidays in lieu of being paid over the "lock down", so people don't have to use them in the last half of the year.

    Think of them as allowing you to use annual leave to enable receiving your full salary during this time. It's better than the alternative, for many people.


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    #4
    Chris_5339762
    Registered Users Posts: 5,849 ✭✭✭Chris_5339762


    20% wage cut (and working the same hours) will likely not affect your pension, but going down to a 4 day week (and working 20% less hours) will. Bear that one in mind.


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    #5
    An Ri rua
    Registered Users Posts: 4,475 ✭✭✭An Ri rua


    Dav010 wrote: »
    You will have to talk about the pay/time cut with your employer.

    In relation to the annual leave, you do not accrue AL during lockdown if you are not working, so if your company is closed for 3 months (quarter of the year), you would loose 5 of your 20 days.

    Is there not a statutory minimum of 20 days? Or perhaps I am thinking of when working a shorter work pattern. I think it's definitely possible to have earned less than 20 but still be due 20.


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    #6
    Dav010
    Registered Users Posts: 14,001 ✭✭✭✭Dav010


    An Ri rua wrote: »
    Is there not a statutory minimum of 20 days? Or perhaps I am thinking of when working a shorter work pattern. I think it's definitely possible to have earned less than 20 but still be due 20.

    AL is accrued depending on hours worked. The statutory entitlement for an employee who works 5 days a week for 52 weeks is 20 days. But you do not accrue leave while temporarily laid off during the pandemic. So if you don’t work for 3 months, 5 of your 20 days are gone because you will only accrue AL during the other 9 months. If you don’t go back to work until phase 5 in August, then 8 days will be gone based on 5 month lay off.


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    #7
    Mrs OBumble
    Registered Users Posts: 25,669 ✭✭✭✭Mrs OBumble


    An Ri rua wrote: »
    Is there not a statutory minimum of 20 days? Or perhaps I am thinking of when working a shorter work pattern.

    It's 4 weeks, at your regular weekly pay. So if you're only paid for 4 days normally, you have four weeks of 4 days pay. Which is equivalent to 16 days of AL.


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    #8
    rn
    Registered Users Posts: 1,056 ✭✭✭rn


    I think all three need agreement of employee.

    The first one would be most preferable to me as it means more time to manage family/work on my side and more importantly when 5 days is restored, salary automatically recovers. The company benefits as it's reducing it's cash outflow.

    The second one I'd get it very difficult to accept, although in these times I'm happy to try and maintain my employment. There would have to be a written agreement as to when 20% would be reinstated. The big problem I have with it is that for me my pension, possible redundancy and my work life assurance are tied to annual salary - so a 20% reduction would effect that, if I needed to call on latter 2 in next 12-24 months.

    The last one is interesting. In my job we're busier since working from home came in. If I was in a situation where I wasn't, then I think I'd be open to using 1 weeks holidays now to ease the holiday pressure on the company now. Again my salary is maintained. If company was offering to just take holidays off me, with neither paying for them nor letting me take time off, I'd be looking to do a deal with my manager for half day per week over 10 weeks. Something like that.


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