Change of contract and pay

[mogandme]

I am a live in nanny. Last night my eployer informed me that she was updating my contract. The changes would include

• A change in hours - 50% cut
• A cut in salary - Around 40%
• An overall change of my position

These will start immediatley so although I will be paid my full salary this month, I will recieve a pay cut next month!!

Is there anything I can do? Or is the only answer to resign as I will struggle to live on the lower salary.

What's are the terms in your previous contract? There should be an agreed notice of change to the terms of the contract ... Which would mean that if either party wish to change or terminate the contract a stated amount of time must elapse before the changes are implemented giving both parties the opportunity to find alternatives (ie. new job/new nanny) before the changes to the contract are effective.
Sounds like a really crap situation...

ACAS and NCMA legal have given me two different stories; ACAS says that MB is within her rights and NCMA legal say that she needs to terminate my current contract and rehire me under a new one

I think she can terminate and rehire, but she should give you notice to terminate, whatever is written in your contract.

An employer cannot change your contractual terms without your consent without being in breach of contract. Therefore if you agree then acas is right and she can make the changes. If you don't agree then she can impose the changes, in which case you could bring a claim against her for the loss of salary during your notice period and could resign and claim
Constructive dismissal if you have the length of service - or else she can terminate your existing contract on notice and give you a new contract. This would be actual dismissal but if you took on the new contract your losses would only be in respect of the difference in salary.

IF your contract has a variation clause which allows her to change salary and hours at will then she is not in breach and can impose the changes.

How long have you worked for her?

I have worked for her for 2 years in a full time capacity. She has sent me over a copy of the ammendments but there are a few things I am not happy with as well as the drop in hours and loss of 40% of my salary.

Then you have the qualifying service to bring a claim of constructive dismissal if she changes your contract. You will need to tell her that you do not consent to the changes to your contract but be prepared for her to then give you notice to terminate your employment.

Presumably the kids are going to school or something, so she doesn't need you for so many hours now?

The correct procedure would be to offer you option of redundancy as alternative to accepting changes in terms. If she is offering redundancy as an alternative (and assuming she is not hiring someone else to do the hours you are losing) then it should be up to you whether you stay or take the redundancy package.

If she has not offered you redundancy and you would prefer to take redundancy than accept change in hours then you need to tell her that she must offer you redundancy as an option. BUT you must have served a full 2 years to obtain a redundancy payout - if (after taking into account notice period) you are short of the 2 yr limit you would not get anything anyway.

Morally, she has been a complete coward and treated you badly, but so long as she agrees to pay redundancy then there's not much you can do (redundancy by the way will I think allow you to claim JSA etc immediately, whereas resigning won't).

It is a different case if someone else is coming in as a nanny to fill those extra hours - that would be outright constructive/unfair dismissal (sending them to a nursery instead is ok, employing another nanny is not - that's the distinction)