Salary reduction

[isolation123]

Hi guys,
My employer has reduced everyone's salaries by 15% due to co-vid19 and sent out new contracts to agree and sign. However the new contract does not state when or even if our salaries will be returned to their original amount. Is this normal? Or even legal?

Thanks in advance,

 

[adam thompson1981]

Hi guys,
My employer has reduced everyone's salaries by 15% due to co-vid19 and sent out new contracts to agree and sign. However the new contract does not state when or even if our salaries will be returned to their original amount. Is this normal? Or even legal?

Thanks in advance,

You don't have to agree to sign a new contract.

If you don't like it, don't sign it.

 

[Forgot password]

Wouldn’t say normal but these are exceptional times and maybe the boss is trying to save the company and do his best for his employees.

I think if you feel what the boss is doing is fair and right in the current circumstances then accept the cut for the greater good BUT make sure there is a clause in the contract stating that this is a temporary cut and will only be in price for 3 months etc.

 

[Mr D]

Hi guys,
My employer has reduced everyone's salaries by 15% due to co-vid19 and sent out new contracts to agree and sign. However the new contract does not state when or even if our salaries will be returned to their original amount. Is this normal? Or even legal?

Thanks in advance,

Yes its legal.

You don't have to agree, you don't even need to keep working for the employer.

Its possible your employer doesn't know if the business income will return to normal later.
For some businesses it won't. Hence not promising what they cannot know they can deliver.

Perhaps the alternative is job losses instead. Reduce staffing to get that 15% reduction in pay.

 

[Stas Lawicki]

15%?

How would you feel if you worked for an airline, or BHS, or Debenhams, or Kath Kitson, perhaps Carluccios or Weatherspoons. What about any number of high street stores and business?

There are literally millions of people who would give anything to keep a job on a 15% pay cut.

Clearly you have your own circumstances and history with your employer so rather than this sounding like a flippant comment (which it isn't meant to be), just work out how much better or worse off you might be in a years' time when hopefully we have gotten over this and you only had to endure a 15% cut in pay.

 

[billybob99]

Maybe you'd prefer your P45 and some universal credit instead.

 

[Newchodge]

Has your workload also been reduced by 15% (or the business turnover)?

You do not have to accept this. Or you can put inwriying that you accept the reduction only on condition that it is a temporary move and will revert to your previous salary by x date.

If you do not wish to accept you must do something, not signing it is of no use. You must put your objections in writing.

 

[Alpha Helica Peptides]

I think this is good for you, because due to COVID we are suffering from many losses and some companies have fired their employees, so it's good your company still paying you to survive in this difficult situation.

 

[isolation123]

Thanks for the comments! I appreciate everyone is in difficult times and a 15% reduction is not the worst outcome, but it is bad for my own personal situation. Thanks again

 

[Mr D]

Thanks for the comments! I appreciate everyone is in difficult times and a 15% reduction is not the worst outcome, but it is bad for my own personal situation. Thanks again

Perhaps a 2nd job can be done?

 

[Stas Lawicki]

Thanks for the comments! I appreciate everyone is in difficult times and a 15% reduction is not the worst outcome, but it is bad for my own personal situation. Thanks again

Can you not find some savings in your day-to-day spending to mitigate the loss?

Again, I don't know anything about you but consider:

Cancelling any memberships or subscriptions that are not essential and that you do not use

Downgrade your phone, TV, broadband, streaming services

Drink less booze!

Heating bills should be coming down with this warm weather but instead of cranking it up on cold nights - warm socks and a blanket go a long way.

Buy the essential foods ranges and buy the individual items of fruit and veg not the prepacked multiples. To be clear - take one of those little bags and fill it with a selection rather than paying for somebody else to have done already.

Go through all your direct debits and standing orders and work out what you can do with and what you can do without.

Forecast known upcoming bills and start putting a few quid a week aside now. Don't rely on expensive borrowing to pay it because you haven't saved.

Negotiate the commitments you do have. If you don't ask, you don't get. Be bold, be brave and see what else you can shave off.

There are loads of ideas and ways to save money. As above, you could also make it up by getting another part time job or role.

I am sure you can do this... good luck!

 

[SteveHa]

Is the alternative, perhaps, to be furloughed at 80% of salary (so effectively 5% less than is on the table now)? If so, you are doing better than many.

 

[isolation123]

Is the alternative, perhaps, to be furloughed at 80% of salary (so effectively 5% less than is on the table now)? If so, you are doing better than many.

Yes furloughed is the alternative for now, thanks

 

[isolation123]

@Stas Lawicki Great tips thanks!

 

[Darren_Ssc]

Drink less booze!

Don't be silly.

 

[billybob99]

Don't be silly.

He meant drink cheaper booze.

 

[Darren_Ssc]

He meant drink cheaper booze.

In that case then, great business advice.

 

[Stas Lawicki]

In that case then, great business advice.

Well, not toooo cheap.

I draw the line at boxes of wine

 

[Awinner2]

My sons' employer has furloughed 80% of staff but the other 20% like him have taken a 20% salary cut but only now work from home for 4 days, not 5. Plus their commissions are cut by 50% on new invoicing until things return to normal ( but who knows when that will be!) The staff remaining think this is very fair in the circumstances.

 

[Alpha Helica Peptides]

Thanks for the comments! I appreciate everyone is in difficult times and a 15% reduction is not the worst outcome, but it is bad for my own personal situation. Thanks again

This is not only for your bad situation, think about the persons they have no income, we are better them and stay safe and strive to save all persons around you. Good Luck!