DH's boss wants to cut his pay

[PrincessLayer]

DH got a letter today saying that his employers want to cut everyones pay by 5% and if the majority of staff agree it will be implemented at the end of the month.

So far most don't seem too bothered, however it is 5% we can't really afford to lose.

Can they cut his pay like this?

i think in this climate anything goes. does he work in the public or private sector? couldn't get away with that in public.

dh took a 20% paycut in may. makes a huge difference to us

Both DP and I took 10% pay cuts earlier this year, it is a good strategy in these tough times. In my employers case, it saved 8 jobs.

They can do it, but it is voluntary, your DH could refuse but too many refusals could lead to a reduction in headcount/expenditure so redundancies could be likely.

remember it's 5% gross so will be less than that net, also you CTC may go up to compensate?

It's a small private company.

He's been there 2 years and "his bit" has grown massively since he's been there although some other sections of the company have gone down.

I'm on mat leave and have just been told that me and my two colleagues at the same level have to take a 20% pay cut otherwise they will have to make one of us redundant. I'd rather take a pay cut than be made redundant but we don't have much choice. It's hard but I suspect financially and emotionally it's better to have some sort of job than none ?

I've just got this years tax credits "award" would I not have to wait until I renew next year or would they change it with a reduced payslip?

PS they can do it......

And I don't think they would make him redundant. He is the only one there who does his job. He was head-hunted and has built a big part of the business up from next to nothing.

We've had to swallow a 15% paycut this year .. with no bonus'es this year we're down 38% on last year

[lidl emoticon]

you just ring up and register a change in circumstances and insist that you need it altered asap.

He needs to give his consent to a change like this. See here and here about changing contracts and disagreeing with changes.

Have they said what will happen if people don't agree? Bottom line is that at the moment, it's happening all over the place to avoid redundancies, which is why most people are accepting it. He doesn't have to agree. But he needs to make sure he understands the consequences if he refuses. Some employers are asking this completely voluntarily at the moment as well.

They have asked for voluntary redundancies.

hana - don't be fooled that it doesn't happen in the public sector too. I am in the final stages of Job evaluation and have recently found out my grade has been cut by about £500 at the top. Unfortunately I am at the top of my band so will be affected. I am also in the lowest scale bracket so that it is affecting the lowest paid. It seems to be happening everywhere.

A 5% paycut in this climate does not sound too bad to me. If the company directors decide to wind up the company and make everyone redundant he will lose 100%.

Might not sound too bad to most, but it is basically the amount that DH has left after paying the bills.

In real money it is about £70.

Seems a bit crap that he works 186 hours a month and won't be able to afford a beer and a curry at the end of it.