DH's work have asked everyone to voluntarily take a 10% cut

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Private sector. Higher earners take a 15% cut, top earners 20%. So we're discussing this and the thing is, what's the point in making this voluntary?

I think they are asking to do it voluntary because they can't legally do it otherwise? Don't quote me on that but I don't think your employer can reduce your pay if your job doesn't change.

They are being "asked" but in reality it's "told" so the company can benefit from the government scheme.

Usually if staff don't agree to something straight off there's a long consultation period (need to check the ins and outs of it though)

Semantics. Like your boss asking if you think you could do the report by Friday. He/she's not really asking are they? By using the word 'volunteer' they are making it sound more inclusive. As long as its across the board you can't really argue without thinking you may not be working there for much longer.

@catwithnohat they can’t benefit from the furlough scheme if people are still working.

As others have said they can’t make people, but either everyone takes a pay cut or they will probably need to consider redundancies and/or furlough. Yes there is government help, but that’s capped at 2.5k and those people can’t work. There hope everyone is prepared to suffer a bit of pain to ensure others don’t lose their jobs.

We’ve been asked to take a 20% pay cut today - will be working 80% though. The highest earners will be having that pay cut but not reducing hours.

I’m not sure what would happen if people say no but unless enough people join in then there will have to be redundancies

My husband has been “asked” to take a 20% pay cut. He’s still working the same hours though.

They'll struggle to go back to full wages afterwards if they all accept. It would be better to do this in exchange for a reduction in hours. Can their union negotiate for them?

Same here, no unions where DH works (not in UK) and the money will be used to help employees around the world who have lost their jobs.
It is time limited though which is something. I’d happier about this because we are fortunate and still have a job and somewhere to live. I’m not sure what DH thinks about it yet though

I remember a few years ago we were asked to volunteer to take additional unpaid holiday when the firm I worked for was in financial difficulty in the last recession. If you didn't sign up, you kept getting reminder emails to sign up, so not really voluntary. But it did mean you kept your job.

I think if an employer just reduces your pay that is classed as constructive dismissal.

Yep same here. The alternative is redundancy so it's a faulty easy choice.

I was asked to voluntarily take a pay cut at one place I worked. When asked what would happen if we declined the opportunity we were told we would no longer be required....

So voluntary, but it was take the pay cut or lose your job.

I think if you refused, you'd probably be made redundant instead so it's not really a choice.

Pretty much every SME I know is doing this. Individuals can apply for mortgage holidays but companies require cashflow to function and salary costs are usually the biggest cost.

I work for a large international firm and we have been asked to take 10-50% cuts. 400 have been furloughed in the U.K.

Everyone has accepted otherwise redundancies become necessary.

DH has had a 20% pay cut, but working the same hours. All the highest earning senior staff have done this. They have to keep the company going somehow. As others have said it’s preferable to the company folding.

Senior management here -20% cut in pay. Necessary to keep business going.
We haven't gone further yet but it will be rolling scale from 5-10% depending on salary.
No cut in hours - have worked harder than have ever done in my life
DH has taken a 10% cut and gets a morning off a week. It helps with home school but he works til midnight most nights anyway - another industry struggling with Coronavirus and they have furloughed everyone they can so only 15 out of 200 left.
It's really shit but I don't thing any company is doing this for fun

All hours and pay where I work have been cut by 20%. It’s tough but most people get that it’s being done to protect against having to make redundancies, so everyone takes a small hit to avoid some people having to take a massive hit.

There is a standard clause in our contracts (and I imagine it’s probably in lots of people’s employment contracts, particularly in large companies) that states that hours and pay can be reduced temporarily. If this is the case for your DH then they are probably just trying to be nice by asking rather than imposing it. If it’s not in their contract then the employer can still find ways to impose changes, although there will be some consultation required. If it’s voluntary then your DH and his colleagues may want to negotiate an agreement that if redundancies are made, payments will be based on 100% pay, and that holiday will be accrued at 100% also.

Are these cuts temporary?

Temp yes - although suggest min of 6 months

It is extraordinarily hard for firms to keep going. The last recession in 2007/8/9 saw firms do the same thing. Everyone took a hit but jobs were kept as far as possible. Most companies though will have to do a re-evaluation of employee numbers if we have the mother of all recessions. I would accept a pay cut and hope there are no redundancies.

DH has had a 20% paycut and I've had a 15% paycut. Both our employers still expect us to work the same hours. We've tried to be pragmatic about it as we don't have any other choice. It's meant to be for 3 months initially but expect our salaries will stay permanently at these reduced levels It pretty much wipes out all our disposable income.

We’re being asked to agree to a 20% pay cut and reduction in hours for up to a year. It’s voluntary because they can’t change our terms of employment without our consent. But there is pressure to agree, not least because if at least 75% do not agree, they won’t implement the scheme and will probably have to make redundancies instead. My firm did the same thing during the financial crisis - it lasted 9 months but they didn’t have to make any redundancies. It’s the right choice but I feel a bit wobbly about it!

They could issue you with new contracts! A contract of employment can be amended. They could make you redundant and then issue new contracts. It’s expensive to make people redundant so most people negotiate. It is often that or no job at all. You don’t have a contract for life that cannot be changed.

For a 10% pay cut I'd be expecting to work 10% less hours in a week.