Tallis Barnard Robbie Kemp Reduction of working hours or pay If your employer asks you to work fewer hours or take a pay cut, this is a change to your contract of employment. Any change to your contract of employment must be agreed by both you and your employer. When deciding whether or not to agree to working reduced hours or to a reduction in pay, there are a number of issues to be considered: Reduced pay – what are the implications of this – for example, money and tax and paying the rent or mortgage Scheduling of working hours – it may suit you and your family to reduce your hours, for example working a day less per week or 2 hours less each day. Downturn in business – what choice do you have. If you don’t accept a reduction in your working hours or pay, your employer may decide to make you redundant. You should ask your employer to give you written details of this proposed change to your contract of employment including a review date. You should respond to this in writing and if you are proposing to accept the change, you should stress that your acceptance is temporary. At the review date the change to your contract can be reconsidered and you could ask to return to the original terms and conditions of your contract. Minimum wage: In some cases an employment contract or terms of employment will say that an employee is paid at the prevailing National Minimum Wage hourly rate. Where this is the case, an employer may reduce the employees pay in line with the minimum wage rates. In other cases there may be a provision in the contract that provides for a reduction in pay. Where this is not the case, your employer cannot reduce it without your agreement, as this would change the terms of your contract of employment. Again, you may agree to reduced wages, if, for example, the alternative may be reduced hours or redundancy in the current economic situation. If you do not agree to reduced working hours or pay If your employer proposes to reduce your working hours or pay, this is a change to your terms and conditions of employment. You may agree to the reduction for reasons as described above. If you do not agree to this reduction there are a number of options available to you: You may make a complaint to a Rights Commissioner under the Industrial Relations Acts 1969-2001. Under this legislation if your employer objects to a Rights Commissioner hearing you would have to refer the matter to the Labour Court. If you say you wish to continue working as before your employer may decide to make you redundant. If you are dismissed in this way, you may qualify to bring a claim for unfair dismissal. Unless your employer can prove there was a genuine redundancy situation and that fair procedures were followed, this dismissal may be found to be unfair. If your employer insists on reducing your working hours or pay you may also consider that you have no choice but to resign and claim constructive dismissal because your employer has breached the terms of your contract. Before you do this, you should always seek detailed legal advice as proving constructive dismissal can often be difficult. If you think that a reduction in your pay or your working hours is a breach of your employment contract you could seek redress through the civil courts.
Posted on: Tue, 14 Oct 2014 11:35:29 +0000
Trending Topics
Recently Viewed Topics
© 2015