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Can my employer cut my salary?

8 replies

WhiteWineAndJaffaCakes · 11/05/2009 20:32

I've gone back to work part-time and I'm in a sales-related job. My contract says I have a basic salary plus access to a bonus scheme. I have a monthly sales target that I need to meet before any bonus kicks in but I'm struggling to get anywhere close so my employer is now saying because I'm not meeting my target they might have to cut my salary. There's nothing in my contract to say my basic salary is dependant on anything so can they do this?

OP posts:
smittenkitten · 11/05/2009 20:53

no, your salary is a contractual right. if they reduce it without your consent, you would be able to claim constructive dismissal. If they are struggling, they might enter into consultation about ways to avoid job losses, and pay cuts might be something they do in agreement and consultation with staff.

flowerybeanbag · 11/05/2009 21:01

Other than in circumstances like smittenkitten describes, where they consult and cut pay to avoid redundancies, no, normally your employer can't cut your basic salary, no.

How long have you worked there? I ask because if you've been there less than a year, there might be little you can do about it, as you won't be able to claim constructive dismissal if it happens.

WhiteWineAndJaffaCakes · 12/05/2009 07:29

I've only been there 10 months so cross fingers they don't go ahead with it for another 2 . If it was to avoid redundancy would they have to apply cuts to all the staff or all sales staff - (there are half a dozen of us with exactly the same job title)? Or can they just consult with and cut particular individuals' salaries (ie me!)?

OP posts:
flowerybeanbag · 12/05/2009 10:09

It's about being reasonable, and it wouldn't be reasonable to just cut the basic salary of particular individuals, no. But you need to hope they don't do it for a few weeks.

Have a read here about changing terms and conditions, and here about if you disagree. You will see it technically might be something they could do, but only once they've jumped through various hoops of consultation, and only if it's a reasonable business decision. Doesn't sound likely to be fair in your circumstances at all.

WhiteWineAndJaffaCakes · 12/05/2009 18:14

Thanks flowery, that's a huge help. At least I can feel a bit more in control if I know what my rights are.

OP posts:
JanJanJanJan · 26/04/2010 21:17

Hi,
I work towards monthly targets with a potential earning of a monthly bonus. "We" as a team hit our targets and therfore expected to receive our bonus earned in March in our April pay packets however the bonus amount paid is only one fifth of what we was all expecting to receive. Our targets have been set previously and confirmed in email but as we have a new boss we were told it would continue the same for March. Can anyone advise if we are entitled to our full expected bonus?

flowerybeanbag · 26/04/2010 22:43

Jan what are the terms and conditions of the bonus scheme? Does it specifically say if you meet a,b and c targets you will definitely get x amount bonus?

StillSquiffy · 27/04/2010 10:31

My bosses unilaterally cut my salary once, when they found out I was TTC and they also did a couple of other things like block my promotion. Totally illegal.

I have an annexe in my garden with a plaque procaliming it the 'XXXSuite', in honour of them, because they ended up paying for every single brick .

If they carry through with it and do it just to you then they will be in deep water. Fingers crossed you get over the 12 month hurdle first.

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