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Original poster

DH been demoted without warning and looking at a £100K pay cut.

93 replies

WifeandMotherof4 · 15/11/2008 12:45

He went to work on Friday as SD and came home a sales manager....
Apparently his immediate boss is looking to go 'forward' in a different direction than he believes my DH can take them in. (there is no further explanation). We know this is illegal and there's nothing he can do as he can still earn £90k and couldn't elsewhere.
I think he should try and get a better package, at the moment they're offereing a £15k parachute payment and reducing his basic to £40k. They are a shoddy twattish company who he has worked for for over 13 years. Our outgoings are £3800 per month and we will probably have to move and take our children out of their (quite cheap) private school. There is also current business to get commission from in January which at 3% he'd get £18k ( at worst £9k) and they've demoted him now to give his replacement good weeks to start his new job....this is their best time.
I am at a loss as to what to advise my Dh besides giving him a pistol full of bullets!!!

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Original poster
WifeandMotherof4 · 16/11/2008 11:22

Well, I have decided to rent out our house and downsizeto a more 'country' area where rent is cheaper. This means we don't lose equity. I am going to try and keep the children in their school but will move where state schools are good so we have that choice. I am going to have a look at a compensation package proposal this evening and see if we can't get a little more blood from this stone.

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Earlybird · 16/11/2008 11:46

What an awful and upsetting situation.

Does your dh have an employment contract? Is he a member of a union? My point is - does he have any legal 'protection' from this sort of treatment?

I completely understand the not wanting to be confrontational as it could sour relationships, and in some ways, a reduced job is better than no job - especially in this climate. But equally, think he should at least have an initial meeting with an employment lawyer who can tell dh his rights, and if his employers have acted legally.

Fwiw (and I'm not a legal bod), think it is unfair to not pay him agreed commission on sales already achieved. 'New' agreement should be enforced on future sales, imo.

Original poster
WifeandMotherof4 · 16/11/2008 11:52

I thnk it's fair to assume this is not legal, but they know he is over a barrel. There are no other jobs paying anywhere near that amount and he has a wife and four children. His boss has just moved to his £1.5 million home and put his children into Clifton college and s clearly couldn't care less about my DH. Fair enough if they feel he isn't doing his job well enough, maybe he isn't what they want, BUT to demote with immeadiate effect and without warning is out rageous. The fact that they have done it so his replacement (an ex junkie from cardiff who avoids maintainence payments by changing his name frequently) can earn well and have a good start says it all really.

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TheGreatScootini · 16/11/2008 11:55

Am pretty sure that legally they have to give him a decent amount of notice re cutting his salary dont they?

My sympathies..sounds like life will be tough for you for a while.Could DH look for another job?Or could you work to supplement his income and try to recoup enough of whats been reduced so that the dc's can stay in school/you can keep the house or whatever..(but I appreciated how horrid it will be to have to make those kind of choices)

Earlybird · 16/11/2008 11:56

How long has your dh worked for this company/this boss?

In some ways, I'm surprised they didn't eliminate his position in a 'restructuring' and make him redundant. Why do you suppose they're keeping him around? Does he have knowledge and contacts they need? If so, can he work that to his advantage somehow?

Original poster
WifeandMotherof4 · 16/11/2008 11:56

I have a two week old baby!! And a two year old at home.

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conniedescending · 16/11/2008 12:00

tbh this sounds odd to me - are you sure your DH is giving you the full picture? Has this demotion been on the cards longer than he is admitting? If you have a 2week old baby I imagine he hasn't wanted to worry you during your pg?

Original poster
WifeandMotherof4 · 16/11/2008 12:04

No, 3 weeks ago he was told he needed to get a further 10% growth out of the office by the end of Q4 (December, they work on calendar not financial year quarters). So we were thinking that he had lots to do by the end of the year.....

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Earlybird · 16/11/2008 12:09

Why would your dh's boss have hired such a shady character as new sales director? Doesn't add up. There must be more to the story.

TheGreatScootini · 16/11/2008 12:16

Oh sorry OP..missed that part.Congrats BTW.

Original poster
WifeandMotherof4 · 16/11/2008 12:53

Honestly it's a sales company!!!! Anyone that can sell is good enough, morals and common decency are not required as the financial reward is high and so it's full of greedy people. Socialising w/o partners is actively encouraged.

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TequilaMockinBird · 16/11/2008 12:56

How big is the company? Is it a national company or more of a 'one man band' type of operation?

hippipotami · 16/11/2008 12:57

Oh Wife, it is so unfair they can do this. But from what you are saying about the company your dh is better off out of there in teh long run.

Your plan of moving to a cheaper area is a good one. And if you do have to pull the children out of school, a good state school can be a great thing. Yes I know you want to save them the upheaval, but I moved schools every 4 years due to my dad's work (we moved house and countries for every new contract) and it was never a problem adapting to the new situation.

Good luck

hippipotami · 16/11/2008 12:57

btw, it felt very weird typing Wife...

Earlybird · 16/11/2008 13:00

OK - asking several questions again because, imo, the answers are relevant/important:

How long has your dh worked for this company/this boss?

Does your dh have an employment contract? Is he a member of a union? My point is - does he have any existing/specific legal 'protection' from this sort of treatment?

Why do you suppose they're keeping dh around rather than restructuring and making him redundant? Does he have knowledge and contacts they need? If so, can he work that to his advantage somehow?

hatwoman · 16/11/2008 13:33

on that sort of salary were you putting a reasonable chunk into pension/savings/mortgage etc? in which case you could cut these for the moment.

hatwoman · 16/11/2008 13:36

eb - making him redundant after 13 years would be v. expensive for them

Earlybird · 16/11/2008 13:50

Ah thanks hatwoman - missed the 13 years bit.

Wifeandmother - how long has your dh worked for his current boss?

hatwoman · 16/11/2008 13:52

it definitely sounds like constructive dismissal - too expensive to be made redundant? oh we'll get you to resign instead...

Original poster
WifeandMotherof4 · 16/11/2008 13:54

He's worked there for 13 yrs, no union....
He owns 5% of the company should it float... this has been made into ordinary (B) shares, whatever that means.He also has another chunk of shares that are a bit golden handcuff, but they are not nearly as much.

We have been spending and holidaying well, and had just made plans to put money aside and save for a second property but it has been slow for a couple of months and we have paid out £55000 on building work and home improvements.

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Original poster
WifeandMotherof4 · 16/11/2008 13:56

The owner chairman has always been his ultimate boss and as the co has expanded other people have been put in between, the company was a year old when he started. There is a CEO who has been there for 5 or so years and a world SD for 5 months... who was supposed to, but hasn't, make big changes (with respect to recruitment and development) in the office where DH is SD.

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LilRedWG · 16/11/2008 13:59

Definitely contact ACAS. I'm sure it is not legal to demote someone without warning.

LilRedWG · 16/11/2008 14:03

Years ago I was made 'redundant' and my replacement started in my position the day after my employment ended. I was told by a MD (unoffically at a party) that it was just that my new manager didn't like me.

I did have a very strong case for unfair dismissal but did nothing about it as DH worked for the same company. .

renaissance · 16/11/2008 14:05

Please please don't go down the constructive dismissal route! He would have to resign and claim constructive dismissal, which is very tricky to prove.

He has had a unilateral change of terms and conditions to his pay, which may or may not be legal. Much would depend on his contract, for instance if 50% of his pay is bonus and 50% is salary. It isn't clear cut.

But what is clear is that they cannot take financial sanctions against him as this is effectively a disciplinary process where he hasn't had the opportunity to put his case across.

Is there a functioning HR department?

But most importantly, your DH needs to consider what he would deem acceptable. If he isn't willing to change jobs and feels that his earning potential is best at this company, then this would be a very different response than if he wants to find another job with similar earning capacity and doesn't care about this company (or ever working there again)

Be very careful about going down the legal route if what he wants is to stay in employent with this company.

Good luck

Original poster
WifeandMotherof4 · 16/11/2008 14:12

I think the best we can hope for is a better compensation package to cushion the fall. They are a nasty little company, they recently settled out of court in a sexual harrassment case against the (father of four) CEO, who spilt wine over the owners wife on her wedding day as he was drunk and a little agressive....one wonders what he has over the owner really.

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