Q. There are rumours that the company intend to cut our pay to make ends meet. Can they do this?
A. Like any other contract, an employment contract can only be amended with the agreement of the both parties (here the employer and you). For example, if you felt that it was a way of safeguarding your job for the long term, then you may consider agreeing to a proposed pay cut , and if you were to do so then the variation would be valid.
Q. What would be the position if they just imposed the change on a "take it or leave it" basis?
A. This is a more dangerous strategy for your employer as it only works if the employee continues to work without objecting. If the employee object then this will be a breach of contract and the employee can resign and bring a claim for constructive dismissal (assuming the pay cut is significant). Alternatively, an employee could work "under protest" and claim for breach of contract or unlawful deductions from wages. This is known as "standing and suing".
A third approach would be for your employer to dismiss its staff and then re-engage on the new terms . However, this would leave the vulnerable to a claim for Wrongful dismissal (unless the employer gives the appropriate period of notice (or makes a payment in lieu of notice) and/or Unfair dismissal, unless the employer can establish a potentially fair reason for dismissal and show that it acted reasonably in dismissing the employee for failure to agree to the change.
Finally, employees who have been employed for one month or more are entitled to a written statement of certain terms of their contract (a section 1 statement). The employer must also provide the employee with a written statement of any changes to those terms.
Employment issues can be complex with much depending upon the circumstances of each individual case. For specialist advice contact Keith Swan of Patterson, Glenton & Stracey Solicitors by email at ks@pgslaw.co.uk or by telephone on 0808 231 7043. Patterson, Glenton & Stracey Solicitors have provided legal advice to the people of South Tyneside for over 125 years. For details of their full range of services and to view previous Gazette articles please log on to www.pgslaw.co.uk. Be Guided by the Experts.
