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Original poster

Pay cut by over £3000

43 replies

LadyWimple · 06/04/2020 14:34

I am working my usual hours, more in fact from home. This has actually increased my outgoings due to using more energy at home. Some distant parts of the large company I am working for have furloughed staff and are only paying them the 80% of their pay as per the government scheme.

My work is not affected by the current crisis but they have written to us saying how they need to cut everyone's pay to spread the pain of the current crisis. I just don't believe them, and feel they are using the crisis to cut back on pay just because they can, they didn't even bother to try and discuss it with us. My partner is disabled and unable to work to this pay cut puts both of us in a bad position financially. Some of my colleagues could face financial ruin all while still doing their job as normal, same amount of work and hours just not in the office. If there was no work and they were losing money I'd understand at least.

Am I being unreasonable to be annoyed at this?

OP posts:

TorysSuckRevokeArticle50 · 06/04/2020 15:51

The company I work for are losing approx £10mill in revenue each month globally and still have outgoings like wages, rent for offices, electric, phone rentals..... to pay.

They've asked for everyone on more than £33000 a year to take a 20% pay cut across the board at all levels including board/ceo etc.

Once we can open our physical sites we anticipate a massive surge in demand as the end product is mandatory so people won't have decided not to bother, they will need to get it, but we don't know when that will be.

AnotherEmma · 06/04/2020 15:53

Are you a trade union member? If so you should ask them for advice and help to negotiate with your employer.

A pay cut is a change to your employment contract and there is advice about what to do here:
www.citizensadvice.org.uk/work/rights-at-work/basic-rights-and-contracts/changes-to-employment-contracts-overview/

CoffeeRunner · 06/04/2020 15:57

DH’s company have furloughed lots of staff, with everyone remaining being given a 10% pay cut for the duration of the disruption.

In reality, those left are working harder to cover those who are now furloughed - but for less money. It’s shit. But it’s happening all over.

Lumene · 06/04/2020 16:01

Lots of businesses will need to do this to survive. No way of telling if yours is genuinely needing to do this without looking at accounts but certainly plausible.

Would you rather no job or lower salary?

BalancingStick · 06/04/2020 20:39

Same here OP. Everyone where I work has to take a 15% salary cut until the end of the year. Plus no bonus this year. So I'm at least 20K worse off this year. It's shit. But better than no job at all,so... I'm trying not to be too down about it.

itwasalovelydreamwhileitlasted · 06/04/2020 20:43

I had to take a pay cut of over £10k - 30% - and was then also furloughed - even after furlough ends we have to stay on the reduced wage until business returns to pre virus levels and mortgage holiday is only 3 months during furlough

Original poster

LadyWimple · 06/04/2020 21:06

I see lots of people in the same boat but I'm not sure about the "at least you still have a job" response. Where does that attitude get you?

OP posts:

Excited101 · 06/04/2020 21:48

I’ve got a friend who from June will be on 65% of her current wage. Her whole company is hugely affected.

I feel incredibly lucky that I should stay unaffected pay wise, so many people will suffer in so many different ways from this 😢

TrudysTerribleFringe · 06/04/2020 21:57

I am shocked and worried, It didn't even occur to me that we might be asked to reduce our pay whilst still working.

The two industries I work for have been mentioned in the thread also. Scary realisation. So sorry to everyone this is already happening to.

VivaLeBeaver · 06/04/2020 22:00

My brother is a teacher. He says he wouldn’t be surprised if public sector staff are told after this they have to take a permanent pay cut. Not sure if that will happen but sure don’t think there will be any pay rises for a long time.

teainthetardis · 06/04/2020 22:34

Is that before or after tax? If it’s £3k before tax it won’t be £250 per month.

MinesaBottle · 06/04/2020 23:01

Same at DH’s company, the directors are taking a 50% cut and everyone else 20%. They still have some work coming in but otherwise the alternative is mass layoffs. They’ve been told it’s temporary but not for how long.

Solina · 07/04/2020 00:02

My DP has also had a pay cut of 10% which is for the next few months. This is for everyone but I believe the people on higher salaries have bigger cuts. They are still working on the current projects which started before all of this but any future ones are all postponed. They will most likely be furloughed in the coming weeks once all the work has dried up. We both think the pay cut is better than losing jobs because they didn't save up money for all the fixed outgoings whilst they could.

safariboot · 07/04/2020 02:04

In most cases your employer can't cut your pay without your agreement!

If you refuse and your employer responds by dismissing you or making you redundant, they need to be able to justify the pay cut as necessary for the business. Which in the current situation they probably could.

WombOfOnesOwn · 07/04/2020 02:22

My pay has been cut by about £10k (I am converting it, I don't live in the UK). It's very frustrating and difficult to figure out the right cuts to make in our family budget. I work very hard, and my part of the company is probably the biggest money-maker we had, but everyone was assigned identical pay cuts according to their pay band, announced broadly at a company-wide meeting for transparency.

They say at my company that this is a limited-time cut only, but leave open the possibility of extensions. I do not believe they'll ever raise it back, though I'd be delighted to be proven wrong. In the meantime, I've started accepting calls from recruiters. There's no way they can't expect us to watch out for ourselves when they won't watch out for us.

twigletpiglet17 · 07/04/2020 02:47

OP something very similar happened to me yesterday. We've been told we'll be taking a 20% pay cut from this month, with no equivalent reduction of hours. A number of staff are also being furloughed on the same pay as those who'll continue working. I would also advise you speak to your union if you have one and don't sign anything until you've seen the evidence - as a PP says, they can't force you to take a pay cut but in the current climate they could claim it's critical for the business - but they would need to prove that. Also make sure you have a review built in as soon as possible - my company are proposing to do this long term, whereas for most it's a measure for a couple of months. Make sure you get everything in writing.

Pixxie7 · 07/04/2020 03:52

Given that the government is relying on the a vast majority of the public sector to keep the country running I think there would be a national outcry if they then have to take a pay cut.

SexIsAProtectedCharacteristic · 07/04/2020 07:25

Can we not jump in with this race to the bottom 'be glad you still have a job' stuff please?

People rights and responsibilities are still important in a crisis. Employees should be paid properly. This shouldn't be seen as an opportunity to cut pay across the board to increase future profits. It will affect everyone eventually if companies start cutting salaries. Wages will not recover in the long term.

I'm sorry to hear this OP.

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