Pay cuts - can a company just tell you you're getting one?

[Biccy]

Can a company just say 'we're not doing so well, without some drastic cost cutting we will not survive so we have decided to cut all your pay by 10%'?

Or is there more they should do if they want to cut salaries?

Contractually, they need to get your consent before doing so. I believe they must give you redundancy pay if you do not accept.

In short yes.

The long version is they have to give you notice of the change / consult based on the numbers. As your job is still there then you would have to refuse the change and go for constructive dismissal at a tribunal.

Essentially this is a change to your T&Cs. There's some really useful info here about what to do if you don't agree to the change.

Look at this:www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions/DG_10037116

Thank you all. I'm not actually unhappy about the paycut, as I would rather we all kept our jobs and the company survived; I was just a bit worried about whether the company was leaving itself vulnerable by just doing it. They didn't technically get 'agreement', but there was 6 weeks between announcing it and implementing it so time for anyone who objected to object (except for me, who they forgot to talk to as I'm on mat leave; but I don't object so that's academic...).

What about if they do it as part of pay evaluations? We are going through this at the moment & will find out in Nov what our pay will be but can't appeal against this, just our job spec. Im on mat leave so missing all the office discussion.

Without getting consent they are potentially vulnerable technically Biccy, however as there is still a job there and as the alternative is likely to be redundancy, anyone who makes a claim is unlikely to get far. It's when changes are made without consultation and without genuine business need that there's a real problem.

nymphadora it doesn't matter whether it's called 'pay evaluations' or anything else. Your salary is part of your terms and conditions so can't technically be reduced without your consent. It does sound like there's a consultation process going on though, which should involve you being represented and the alternative to any pay cut being made clear to you. If you're feeling you're missing out on discussions you should contact your manager and ask that he/she ensure you are kept informed.

Thanks flowery I guess union is representing me?

Sorry for slight hijack biccy!

No problem at all! glad to bring up something useful to someone else.

Yes nymphadora they will be representing you, so perhaps contact your rep about being out of the picture in terms of what's going on.