I have had my salary cut by 10% this week (with immediate effect) due to the coronavirus and uncertainty

Posted on 31 Mar 2020

My employer has cut all the employees salaries by 10% and 20% as they are unsure about the future of the company due to them doing business within Leisure/Restaurant/Residential.  We were called into a meeting this last week and told us all we would have a salary cut with immediate effect. I was called separately into a meeting room for 2 minutes to have my old monthly wage and what will be my new monthly take home pay written on a post-it note. There has been no official letter or renewal of contract.

In the meantime Directors (4 of) are cutting their own salaries by 40%, albeit still earning a high salary of course.  Approx 15 consultants are all keeping their Company cars and having mileage/expenses paid. They are also still intending to take on a new employee in May.

I am in the lowest pay bracket of the company and living alone in rental accomodation (private rent is very high) and suffering with a 10% reduction.

Is this a legal what they are doing?

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