[vc_row][vc_column width=”1/1″][vc_column_text]Responding to the news that some 25% of all British manufacturing companies have already reacted to the recession by cutting the hours worked by their staff, Gamlins believes that employers need to understand the full implications of proposing a pay cut.
Of course it is not only manufacturers who are making such requests. Employers in every industry and profession are facing the downturn, and four-day weeks and temporary closures are becoming increasingly common means of reducing costs.
In many cases, though, employees are not obliged to agree to a request to cut hours or pay, so businesses should understand that it is not a sure-fire way of cutting costs.
That said, in most cases employees will choose not to rock the boat in the hope of protecting their jobs, but they have several options open to them if their employment contract does not include provisions for a pay cut. For example, they can put a written grievance to their employer stating that they are working under protest. People can only work in such a way for a limited period, however, and a resignation and claim for constructive unfair dismissal is often not far behind such a course of action.
Another route would be for the employee to claim at a Tribunal the difference between their normal and their reduced pay. And if their claim involved more than pay alone, they may also be able to sue their employer in the county court for breach of contract.
The contract of employment is therefore a key tool in managing and reducing the risks brought about by recession. If you would like advice on your particular situation, do not hesitate to contact one of our employment specialists at your nearest Gamlins office. We would be delighted to help.[/vc_column_text][/vc_column][/vc_row]
