Employer enforcing pay cuts - what do I do? HELP!

[Feierabend]

I work for a small independent company that's been doing very badly for the last year or so, while I was on maternity leave. I am due to go back next week but they recently phoned me to say they were 'introducing 10% pay cuts' for employees my level, including me.

I wasn't actually ASKED if I agreed but basically told, this is what's going to happen. AFAIK this is not on so I requested a meeting, explained that I was not happy and that I would like to get something in return if I am to agree to this pay cut, such as reduced hours or at the very least, as a token gesture, and extra day's holiday.

My bossed took very long to get back to me, then finally today I got an email saying no, we are not going to give you any additional holiday.

My pay is supposed to be cut from 1 March and they haven't even sent me an agreement to sign yet.

I am majorly pissed off and feel like telling them that thanks but no thanks, I will NOT volunteer to have my pay cut, and then see whether they dare make me redundant on the back of that.

Also, if they don't send me an agreement to sign before 1 March but then try to cut my pay from 1 March, I would love to take them to court over breech of contract.

But then I probably won't have the energy to do so

What would you do in my situation?

[Feierabend]

Sorry for typos by the way, was helping DH hang a lamp at the same time is typing!

[hana]

surely it's better to have a job than be made redundant?
dh took a 10% pay cut well over a year ago, plus bonuses (2x yearly) but he still has his job.

[said]

Um, I'd take the pay cut rather than lose my job. As long as it's done fairly.

[WidowWadman]

If they don't single you out, but do it to everyone than you don't have a chance, I'm afraid. Had it happen to me too last year (and since found myself a better job)

[PotPourri]

Dh lost his job a year ago, and still doesn't have one now. We are about to have our fourth child. I think a reality check is required - ok maybe they didn't go about it as you would have liked. But they are trying to preserve jobs

[Earlybird]

This is increasingly common.

Employers/businesses under pressure in this economy are reducing hours/pay across the board as a way of avoiding redundancies.

How long have you worked for the company? Have they been good/reasonable employers?

[WidowWadman]

For some people a 10% paycut is hard to take - in my case it meant that after childcare costs I was worse of than on SMP.

I can totally understand if somebody does not want to accept a cut, especially if there's no goodwill gesture in return.

Doesn't change the fact that she probably has no chance, but I don't think that she needs to be attacked for not just accepting it.

[Earlybird]

OP has not indicated any specific financial hardship as a result of the pay cut.

IMO, The goodwill gesture from the company is that she gets to keep her job in this economy!

I don't think OP is being 'attacked' here - in fact, imo people responded to her with restraint given the tone of her post.

Of course, no one wants to take a pay cut, but I shouldn't think her attitude has done her any favours with the boss, btw.

[Feierabend]

Thanks WW I should have added, the pay cut to me means that after paying for childcare, I will bring home just £200 a month. So I am asking myself very seriously if it's worth the hassle or if I wouldn't be better off staying at home with the dcs!

[shonaspurtle]

I don't think you can stop the paycut. What you can do is start looking for a new job.

If the paycut doesn't reflect pay rates in your industry then go and work for someone who pays better. If you can't find another job then be glad they're making a 10% pay cut rather than cutting staff.

I do sympathise, it really grates to do the same work for no money, but like many others my dh is being made redundant. I'd far rather they'd have made it a paycut tbh.

[Feierabend]

Oh - and I have been with the company for 6 years and think it's badly mismanaged. The only reason I am still there is that they let me go 4 days after I had DD1, which is unusual in the industry I'm in.

[coldtits]

It depends how much difference £50 per week means to you. To me it would mean a lot, and I would do it.

[Feierabend]

Earlybird 'my attitude'?

[Earlybird]

Perhaps you and the other employees should ask what would need to happen for the company to restore full salaries.

It would show that you are willing to 'pitch in' when times are tough, but also should benefit when things have improved.

[said]

So, before the pay cut you would have been bringing home £220 ish per month? What are your future prospects there once your children are at school?

[Feierabend]

Okay, see it this way. DD2, who is just 10 months old and used to being at home with mummy, is just being settled into nursery so I can return to work. I would have brought home a decent amount of money after paying for all nursery fees and travel to work. As it is, with the pay cut I don't feel I can justify going to work and leaving my children any more. Does this make more sense to those of you who have told me I'm being silly?

[Feierabend]

Said, no I would have brought home more than that - there are other things that go off my salary as well such as childcare vouchers and pension payments so it works out as a 40% pay cut bottom line.

[PotPourri]

You are not being silly. No one said that. Everyone understands that it is gutting, but what we are trying to say is that longer term it is more gutting to be made redundant.

If you are seriously thinking that you want to stay at home, why not start negotiating redundancy package/compromise agreement?

[Feierabend]

Ah I also should have mentioned that I am planning to stop working when DD1 starts school, so I was only planning on going back for 18 months and then resign.

So what are my other options then - you mentioned negotiating redundancy?

[shonaspurtle]

Yes, if you're not that bothered about staying it might be worth asking them about voluntary redundancy.

If they're needing to make savings they might go for it and 6 years should allow you to get a fairly decent pay off. Dh is getting 3 weeks per year.

[Feierabend]

How do I work out how much I'd get as redundancy pay then? They would only pay the minimum they are legally required to.

[PotPourri]

They would only pay minimum if they are making redundancies. They do not need to go through the same process if they are doing it voluntarily. Basically it is up to you to negotiate. Work out how much would be worth it for you. Sona, 3 weeks per year is a good payout.

[Cosette]

I think they're out of order, and possibly acting illegally. Whilst it's not unreasonable to request employees to take a 10% paycut in order to balance their books and avoid redundancies, I don't think they can mandate it.

If it makes your return to work not financially viable, then they should be making you redundant.

Some guidance here - www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions/DG_10037116

[Feierabend]

So do you mean if I offer to take redundancy, I should aim for more than what they'd have to pay me legally? Or less? Am confused now. And on top of the 'redundancy pay' do I also ask to be paid for my 3 month notice period? And do I work during the notice period?

[flowerybeanbag]

I think people are being a little harsh on Feierabend tbh. Yes lots of people are having pay cuts at the moment, but that doesn't mean an employer gets to cut someone's pay whenever and however they like. If they are necessary from a business point of view there's a way to go about it. The employer needs to explain why it's necessary, give employees the opportunity to come up with alternative proposals to save money, and make clear what will happen if the proposal is not accepted so that employees can make an informed choice. It's also usual practice (as well as a good idea!) to offer a little sweetener.

Yes it may well be inevitable but I think the OP still has a right to be p&*%d off at the way it's been handled, particularly as she's indicated she'd be prepared to accept it with a bit of give on their part. I'd suggest asking them to clarify what will happen if people don't agree to the paycut.