Reduction in pay due to Covid19

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  PROFILE

  Summerfield Browne Limited

  An employer is entitled to make a change often known as a ‘variation’ to an employment contract if:

  • there’s something in the contract that allows the change. This is commonly referred to as a ‘flexibility clause’ or ‘variation term’
  • the employee agrees to the change
  • the employee’s representatives agree to the change (for example, a trade union)

   

  An employer can force a new contract on employees, although this should be a last resort and could lead to legal action.

  The contract would need to be checked to see if such a clause exists and whether it is clear and specific about what can be changed. If the contract is absent of such a clause then the employer and employee would need to agree to the change before it can go ahead.

  Changes can be agreed verbally or in writing, but they do not always have to be in writing. However, when a change is made to an employee’s pay then this must always be in writing and the employer must do this within a month of the change taking effect.

  As for the annual leave, an employee is entitled to a minimum of 5.6 weeks paid holiday each year, although an employer can offer more, and whether they can make the change to the entitlement depends again on whether there is a clause that allows a change to be made. Employees should remember that holidays must be taken when it is convenient with their employer – there is no absolute right to take the holiday times of your own choosing.

  If the contract does not allow for any variations to be made and you do not agree to the reduction in pay, then your employer might be breaking the contract's terms and conditions and therefore may be in ‘breach of contract’.

  Should you require further information then please do contact Summerfield Browne Solicitors on 0800 567 7595 or email enquiries@summerfieldbrowne.com

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  PROFILE

  Summerfield Browne Limited

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