Can my employer simply cut my pay or hours of work due to the corona virus outbreak? If they do this, then consider that unlawful and you can take measures depending on how serious the issue is. A salary reduction is essentially a variation of an employee’s contract. Can my employer reduce my salary by half without my consent? PAYE or PRSI) the deduction is provided for in the contract of employment (e.g. September 16, 2014. When you have an employment contract in place, your employer can't cut your salary without reworking the agreement. I am employed by a company and working on a construction project which falls under the classification of a vital sector. My company is family owned, and I report to the owners directly. deduct money your wages without consent from your final pay, and his or if reduced below minimum wage and your agreement. It can also modify the terms and conditions of your employment without notice or cause. Your employer may change these work practices without your consent. Employer not paying my final settlement due as per contract, I had various emails communication in more than three months, with companies’ HR but no conclusion. An employment contract cannot be unilaterally varied by one party without the consent of the other. As such, the law generally requires a salary reduction to be with the employee’s consent. Unfortunately the answer is yes. An employer cannot unilaterally change a fundamental term of employment without being at risk of a constructive dismissal claim. Variation clauses. In this case, he must discuss the potential pay cut with you and you must agree to it. Although his salary … Failure to obtain consent prior to a reduction may amount to a breach of contract by the employer, allowing an employee to claim for constructive dismissal. Generally, it is unlikely an employer will be able to lawfully impose a pay cut without consulting with employees first. Immediately i called the HR to confirm and my worst doubts came true. This one we have agreed. So, your salary cannot be reduced without your discussion and agreement with your employer. Please seek further legal advice to determine whether this claim is right for you. 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. Absent an employment contract with your employer, you may be demoted or have your salary reduced at your employer's discretion as long as the decision is not based upon an illegal factor (i.e. An employer is generally not entitled to unilaterally impose on an employee a pay cut or reduced hours without your consent. Failure to obtain consent prior to a reduction may amount to a breach of contract by the employer, allowing an employee to claim for constructive dismissal. In one of my cases, the employee was asked to work an extra three hours each week, but without any additional pay. Even if you had to pay any arrears to your ex-employer they cannot claim the same from your wife unless your wife has provided her consent. As you know, one party to a contract simply cannot change that contract without the consent of the other party. One of the fundamental terms of the contract of employment will be that dealing with pay/salary. Variation clauses may be contained in the contract allowing employer’s to change a particular term or condition in the contract without the employee’s consent. If your employer has a downturn in business or there is less work for you to do, your employer might ask you to take a pay cut or to work fewer hours. Cutting wages therefore is a variation or change of a fundamental term of the contract and is a dangerous area for the employer. Your employer can not simply decide to cut your wage or hours without consultation. I have been in my current role (Director of Business Development & Marketing) for 11 months, and I am salaried (plus commission). Consulting in advance can help your employer map out who is most likely to be negatively affected by the planned change, and take steps to reduce this negative effect. discrimination against you based upon your age, race, religion, gender, etc.) Thank you for your question. As such, the law generally requires a salary reduction to be with the employee’s consent. The management has went ahead and deducted from my salary without my consent. An employee can decide to accept a change, and many terms of the contract are, of course, varied from time to time by mutual consent, for example a pay increase . To it of my cases, the employee ’ s contract shortages etc. know, one party to contract... Cut without consulting with employees first they possess or have exercised a right, or for a discriminatory reason position. 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