Is it legal to slash wages to minimum wage?

fizzyfizz

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Oct 8, 2018
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I've been employed for 20+ years by the same company. We're currently hitting rocky ground and the boss has told us we need to take a pay cut. But not just any pay cut. He's trying to slash it down to almost minimum wage when previously it was in the mid 20k region.

Is he allowed to do this by such a huge amount? It feels like he's trying to force us out and look for another job to avoid paying us redundancy.
 

Alan

Free Member
  • Aug 16, 2011
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    I'm not an HR expert, one might come along soon, but a quick Google of "can you enforce a paycut" found this https://www.localsolicitors.com/employment-guides/can-my-employer-reduce-my-wages

    "It is illegal in the UK for an employer to impose a reduction in pay across all of their staff. For a pay cut to be imposed on any employee, their consent must first be given in order for the reduction to be legal. This means that a pay cut can only be unilaterally applied across a workforce if each staff member agrees to it."

    So it sounds like you can just say no and wait for the firm to go bust ( it it does ).
     
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    Mr D

    Free Member
    Feb 12, 2017
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    I've been employed for 20+ years by the same company. We're currently hitting rocky ground and the boss has told us we need to take a pay cut. But not just any pay cut. He's trying to slash it down to almost minimum wage when previously it was in the mid 20k region.

    Is he allowed to do this by such a huge amount? It feels like he's trying to force us out and look for another job to avoid paying us redundancy.

    If you do not agree to it then how many lose their jobs?


    Or everyone wait (and not agree to a change in wages) until the company goes insolvent then claim any missing wages from the insolvency service?

    https://www.gov.uk/your-rights-if-your-employer-is-insolvent
     
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    Newchodge

    Moderator
  • Business Listing
    Nov 8, 2012
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    You can refuse any change to your employment contract with which you don't agree. If this change is imposed and you have at least 2 years' continuous employment with that employer you can walk out as a result of the breach of your contract and claim unfair (constructive) dismissal
     
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