In thinking my work cannot do this?

[apricotdreams]

Hi everyone
Is there anyone who knows about employment laws?
I have worked for my company for 20 years. I work three days a week in an admin role and have a signed contract.

The company are struggling financially due to the pandemic but also bad business decisions. I was told this week that they are going to reduce my hours to two days per week for at least three months starting November to save money. I am a low earner in a company that pays some very high salaries. I will loose 400 a month. That's pennies to them but is a financial disaster for me.

Can they just do this? There is nothing in my contract to say that they can. I have a meeting to discuss it later this week. Should I say I cannot accept it? Could they then get rid of me? I am so worried.
Any advice much appreciated

Hopefully someone knowledgeable will post but you could always contact ACAS for free advice?

Join a union and ask for advise. I think it depends on your contract as to whether it is allowed.

Technically they can but its not without risks for them. They will need to formally enter consultation to change your t&c unless you agree informally. I wouldn't agree to anything and would be asking them what other things they had considered to reduce costs other than this. I have experience in this area and think they'd be crazy to do this with your length of service unless they have a very robust business case.
I second ACAS for advice.

Solicitor here. If you have set hours in your contract then this would be a potential redundancy. You don’t have to accept the reduction but the alternative could end up being no role at all. Are you the only person doing the role.

My other half got made redundant and we went to ACAS as we didn't think it was a fair decision...long story...but ACAS we're brilliant, it's all free and we ended up getting a lump sum of money from my other halves old company because ACAS put up such a good argument on the unfair dismissal for him! It's definitely worth calling them!

Thanks all

I will call acas this afternoon

@cloudtree I would actually prefer it if they made me redundant as would get decent pay off but I assume they wouldn't want to pay redundancy amount. I am the only person doing my role but I have a person senior to me who can do it.

I guess I am taking this personally as I have been there so long. It's a new broom that has come in to "turn the company around" that is making the change to my hours.

Do you have a lay off / short time working clause in your contract? If so they can do this, but only for a certain amount of time.

@devildeepbluesea No I don't have that in my contract.

There is an legal/employment section on MN ask start a thread in there and link it to this one. Lots of helpful qualified people will answer when they have time.

Yes they can. And it’s not technically correct that they would have to make you redundant as an alternative, although a decent employer would probably offer that. They probably think they are doing the right thing (a pay cut only for 3 months as opposed to no job at all). Have you asked about redundancy? And you wouldn’t necessary get a decent pay off.

Yes they can. And it’s not technically correct that they would have to make you redundant as an alternative, although a decent employer would probably offer that.

You’re wrong.

I'd be interested to hear what ACAS say, OP. Good luck and please let us know.

www.acas.org.uk/changing-an-employment-contract/when-changes-are-not-agreed

@Happyfeet1972

Technically they can but its not without risks for them. They will need to formally enter consultation to change your t&c unless you agree informally. I wouldn't agree to anything and would be asking them what other things they had considered to reduce costs other than this. I have experience in this area and think they'd be crazy to do this with your length of service unless they have a very robust business case. I second ACAS for advice.

This is good advice. I work in HR and it is technically possible to do what they're doing but I'd be wary of managers in my business trying to do it.

They may genuinely be trying to avoid a redundancy situation but they still need to follow a proper process before changing your contract. ACAS are an excellent source of advice so do give them a call.

It would be unusual to do this just for one person. Have others had hours cut/pay cuts too? If not and you feel you are being forced out you could sue for constructive dismissal. Everyone should be taking some of the pain, not just you.

This happened to me for a short period at the start of lockdown. Company wanted to cut pay and hours from 5 days a week to 4.

We had to sign it off and I think it’s a requirement of contract law that you mustn’t sign under duress (not a lawyer or solicitor!). The feeling was very much “if you don’t sign it the redundancy axe may swing in your direction”, although that wasn’t vocalised.

An employer cannot reduce an employees hours without their consent - they have to make you redundant and then re-hire on the reduced hours but theres nothing to say they have to re-hire the same person. If you've been there for 20 years and there isn't any a company redundancy scheme, your statutory redundancy will be 1.5 x weekly wage x 12 years (the max) plus pay for any outstanding holiday accrued but not used

Also, if they unilaterally reduce your pay without your consent you'd have an unlawful deductions from wages claim against them.

Be careful OP. If you agree to this and then they go for redundancy in a few months your redundancy pay out will be based on your new hours. You might be better going for redundancy now.

Op does your contract state three days? What exactly does it say?

They are permitted to change roles as per business need, Howver if you refuse they can simply make you redundant and re employ someone to do the job for two days.

@blobby10

An employer cannot reduce an employees hours without their consent - they have to make you redundant and then re-hire on the reduced hours but theres nothing to say they have to re-hire the same person. If you've been there for 20 years and there isn't any a company redundancy scheme, your statutory redundancy will be 1.5 x weekly wage x 12 years (the max) plus pay for any outstanding holiday accrued but not used

This depends on what her contract states as contracted hours and she has not clarified it.

Hi all

Quick update

I spoke with acas and they were very good. Told me that the company were taking a risk as I could claim breach of contract. They emailed me and outlined different options.

Anyway, had discussion with work this afternoon. I told them that I couldn't accept and that I had got advice etc. They sounded surprised and said they would discuss and get back to me. Within half an hour I got a call to say they have decided that it wasn't the right thing to do as they didn't want it to cause so much angst and they would save the cost another way. They were apologetic for the stress it caused me. In other words they realised they couldn't get away with it!

I am very relieved.

Thanks for all the advice

Good to hear a happy ending, OP

Well done OP.

Good ending, well done!