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New contract with reduced pay rate.

6 replies

stroneranger · 24/05/2019 12:44

I was employed by a college and had an offer letter giving me an hourly rate for a variable hours contract.

The college was then almost immediately taken over by an umbrella group, who about a month later sent me a new contract. I noticed that in the new contract my hourly rate was a lot less.

In my first payslip I received the first rate but in my second, I have received the lower rate. I rang HR as I believed this not to be legal who are going to investigate but suggested that as I had not had a contract yet, just an offer letter, this would not be illegal. All other colleagues who have worked longer are still receiving their higher rate of pay.
Could anyone let me know what my legal position really is - I am new and so don't want to be difficult as I enjoy my job but this seems outrageous to me. My manager is on my side. I did not sign the new contract.

Thanks

OP posts:
prh47bridge · 24/05/2019 13:11

Did you start work for the college before or after the takeover?

stroneranger · 24/05/2019 16:25

About a week or two before - so all the paperwork was from the old establishment.

OP posts:
prh47bridge · 24/05/2019 16:58

If you started work before the takeover TUPE applies and they cannot change your salary. They must pay you at the same rate as you were being paid initially.

If you started work after the takeover TUPE does not apply. In that situation you should have objected to the contract when it came through and made it clear that you were continuing to work under protest. If you haven't done that they could argue that you have accepted the reduction in pay. You should lodge a formal objection immediately.

Hopefully it will turn out that someone has messed up the paperwork and you will get paid correctly.

stroneranger · 25/05/2019 00:01

They are insisting that they paid my higher salary by mistake and there is nothing they can do to change it. I am not sure of the exact date that they changed to the new employer but it was after I started and in my induction I was told nothing would change.

OP posts:
AlwaysCheddar · 25/05/2019 07:08

They are wrong. Contact ACAS.

prh47bridge · 25/05/2019 08:30

It appears to be a TUPE situation which means they are wrong.

If it was not a TUPE situation it would be more complex. But if you started work before the employer changed they cannot change the terms of your contract like this. They are bound by your offer letter.

Point out to them that, as you have been transferred under TUPE, they absolutely can and must change it. Your salary is the one agreed by your original employer and they cannot reduce it. If they fail to restore your salary to the correct level you can take action against them for unlawful deduction of wages.

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