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Johnoco

New Work Contracts

32 posts in this topic

I don't consider it reasonable to impose a 20% pay reduction without a serious amount of genuine consultation and discussion with those involved. Like others have said, I'd expect it to be phased in and perhaps something coming back the other way (equity perhaps - although it sounds like a company on the way out).

I was asked to take a 25% pay cut around 12 months ago along with the rest of the senior team, and I had 24 hours to accept. I wrote back and said I needed a more reasonable amount of time to consider the impact on my family budget. Before taking a week to confirm that I was declining the kind offer and suggesting details for 15-20 genuine cost saving measures.

The company was duty bound to consider these in full before doing anything else, and given my position within the firm I was able to insist that all working out was shown which of course was going be quite an effort given how detailed and complex some of my suggestions were.

Businesses have the catch-all reason of "business need" to fall back on if it went to a tribunal. A 20% decrease may not be reasonable to you and I but our opinion doesn't matter. The business would argue that paying employees 20% over 'market rate' makes them uncompetitive and puts the business and other employees' jobs at risk and that they need to make such cuts to safeguard the business. A tribunal would find that 'reasonable' no matter what we think.

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Businesses have the catch-all reason of "business need" to fall back on if it went to a tribunal. A 20% decrease may not be reasonable to you and I but our opinion doesn't matter. The business would argue that paying employees 20% over 'market rate' makes them uncompetitive and puts the business and other employees' jobs at risk and that they need to make such cuts to safeguard the business. A tribunal would find that 'reasonable' no matter what we think.

.....and of course that has been their choice to do that and to enter into contracts which were considered fair for them and their employees and allowed them to attract a better quality of employee (perhaps not in this case :-) ).

It's far from as cut and dried as you may suggest. I'd fancy my chances if a company had paid me x for years, which I reasonably structured my life and personal finances around, then decided it was changing without proper consultation. A company cannot hide behind anything IF it is unreasonable.

We're not talking 5% here, or a reduction in holidays etc but £1 in £5 which is massive!!!!!

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Any update on progress?

I have received a new contract. I now have 2 options.

1) Take it

2) Leave it

That's pretty much it.

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Submit a formal letter to the company telling them you do not accept the changes but will work to them under protest. This will protect your position if you decide to take legal action at a later date.

http://www.xperthr.co.uk/faqs/topics/1,6/variation.aspx?articleid=110625#110625

Thanks. I will do that.

Ironically, I have just had to turn down a job offer as it meant relocating, which at this moment is not an option.

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Businesses have the catch-all reason of "business need" to fall back on if it went to a tribunal. A 20% decrease may not be reasonable to you and I but our opinion doesn't matter. The business would argue that paying employees 20% over 'market rate' makes them uncompetitive and puts the business and other employees' jobs at risk and that they need to make such cuts to safeguard the business. A tribunal would find that 'reasonable' no matter what we think.

Surely that would raise the question how they found themselves in this position of 'overpaying' their employees by so much and how long has this been the case and why only now they are doing something about it. If it's been a gradual process over so many years that this disparity has occurred then why not 'correct' this over the same time scale moving forward rather than in one hit to the employees?

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