Reduction in pay due to Covid19

1st Apr 2020

Hello, we have been advised this week that all staff from 1st April-31st December have to take a 25% pay cut each month due to Covid19. They have also said that between 1st April and 30th September we have to take 9.5 weeks additional leave at this reduced pay on top of the annual leave we already have. Are they allowed to reduce our pay and enforce leave? Any advice would be much appreciated

CATEGORY: Employment

LOCATION: GREATER MANCHESTER

1 answer
  • Summerfield Browne Limited

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

     

    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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    Summerfield Browne Limited

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