Please do not include any personal details, for example email address or phone number. However, there are circumstances where it is permissible to do this. No employer can stop you from chatting about salary, so all you have to overcome is the weight of our cultural discomfort with honesty around earnings. An employer is generally not entitled to unilaterally impose on an employee a pay cut or reduced hours without your consent. Did you get the information you need from this page? Ultimately, it's your employer's decision to furlough you and the government can't force companies to do so or penalise them for not doing so. redundancypaymentsonline@insolvency.gov.uk, How employers can reclaim money owed by an employee, your contract specifically allows the deduction, it’s required by law, for example Income Tax or a court order, you missed work because you were on strike or taking industrial action, be flexible and fair claiming the money back, agree a repayment plan with you if needed, believed you were being paid the correct amount and will struggle to pay the money back. This limit does not apply to your final pay if you leave your job. I signed a new contract confirming my hours and hourly rate of pay which was calculated by my employers and based on my previous salary. The government it currently paying 80 per cent – up to £2,500 a month – of the wages for around 6.3m… Rules employers must follow when making staff redundant - consultations, notice periods, compulsory and non-compulsory redundancy and redundancy pay Trustpilot. If you are on a zero-hours contract for example, there is unlikely to be any rights to be provided with work or pay (even in these circumstances, you should seek advice). News; Events; Contact. it is required or permitted by a statute or contract term; or . Workers also cannot be required to work additional hours without fair compensation. You are entitled to full pay unless your contract says you can be asked to take unpaid leave or reduced pay lay-offs. Find out about the laws in place to protect … Can your employer fire you if you don’t accept a pay cut? Can an employer reduce an employee's wages? Rights an employee has if they work more hours than their contract says. “There’s a legal risk and there’s a non-legal risk.” Legal risk “The legal risk would be a claim for constructive dismissal,” she explains. Speak to an employment law expert today and get instant advice based on the ACAS Code of Practice. But, what they can't do is lower your salary without telling you in advance and you (the employee) must agree to it. Back in March I was offered a new position within the company with an increased Salary which would take effect as of September. An employee can be overpaid through payroll by paying a bonus that hasn’t been awarded, or paying too much overtime or commission. Gleeson advised that if an employer was to reduce an employee’s salary, for example below the national adult minimum wage (currently $656.90 per week), this would be a breach of the National Minimum Wage Order. Your employer should let you know if they’re about to make a deduction from your pay. Pages are being tested and improved. This is the most important rule in salary reductions. You won’t hear any confusing jargon, either. If so, do I have any say over this or do I simply have to take it on the chin? And in this guide, we discuss the legalities behind reducing work hours. They have deducted the 'excess' amount from my last pay packet, and from next month will be reclaiming the excess paid over the last 6 months. You cannot however reduce your pension contribution to below 4%. Where this is the case, an employer may reduce the employee's pay in line with the minimum wage rates. They are not obliged to give their consent, and they could take legal action to prevent such a change. But, what they can't do is lower your salary without telling you in advance and you (the employee) must agree to it. I've been back at work for 2 months after maternity leave. Can my employer reduce my salary because I have resigned? my question is can a company reduce salary of a employee on non performance ground with out any notice or letter. Your employer can take a maximum of 10% of your weekly or monthly gross pay (your pay before tax and National Insurance) if you work in retail. Search for: Pages. As a UK-based team, you can feel secure knowing that you’re speaking with an advisor who has your business’s best interests at heart. Is this legal? Your employer can ask you to take a lower salary, however as this is a variation to your employment contract, both you and your employer must agree to it. There is a view that you may be able to reduce an employee’s salary as part of a performance management process if there are explicit provisions in an employment contract to that effect. The Working Time Regulations 1998 implemented the provisions of the Working Time Directive, thus providing workers with the right to paid holidays. This is our beta website. If you do not agree your employer can still terminate your contract or make you redundant. Hi, I finally got through to ACAS today, my employer wants to reduce my hours temporarily ( or so she said), ACAS said that if there is a lay-off clause in my contract then they can do this, but as I have no written contract then they can't lay me off for the 2 days a week. Your employer must let you know in writing if you owe them money. The guidance explains about how tips and the national minimum wage work, and looks at how tips can be collected and shared. Show More. If the overpayment was a long time ago, or overpayments have been going on for several weeks or months, your employer should: Speak to an Acas adviser to discuss your options if you: If you disagree with a deduction you should first try to resolve it with your employer. It will largely depend on the terms of your contract as to whether your employer can reduce your hours and pay. You can do it. What you can do is ensure your employer has confirmed (in writing) that the reduction is temporary. Many of your fellow UK business leaders … However, if the employee with an outstanding obligation is about to leave the company, the employer can deduct the full amount from the last pay check. And by “rules” I mean any term of the employment relation, from your title to your hours, from your compensation to … Your employer can choose to pay the remaining 20 per cent of your wages, although it is not obliged to do so. Now my employer has told me that the sum is wrong. What are your pay obligations under the Fair Work Act? 2. This limit does not apply to your final pay if you leave your job. During this time, sit down with the job offer and determine whether it’s a fair offer. 24/7 Employment Law Advice, Only for UK Employers By: Hayley Orchard. What you can do is ensure your employer has confirmed (in writing) that the reduction is temporary. We tell you what you need to know in a phone call. This is to cover any mistakes or shortfalls, for example with cash or stock. A gratuity or tip is an amount of money given by a customer to a service worker and is common in the hospitality sector. So, can you legally reduce employee hours? Employee Rescue Guides, together with our Documents and Templates provide you with key employment law knowledge to assist you in addressing problems at work and on termination. I was on a full-time salary for 2 years, and i've gone back part time. There are rules in place relating to changes of any of the terms of the contract. If you are forced to resign because your employer has reduced your hours or your pay, then you may have grounds to bring a claim of constructive dismissal. The question of whether an employer can reduce an employee’s salary to make up for the superannuation guarantee charge (SGC) increase allows me to introduce some FW Act provisions which, in my experience, many employers do not know about. Legally, an employer cannot impose a pay cut upon its employees if they have an employment contract that sets out details of their salary entitlement. In Northern Ireland, they can get advice from the Labour Relations Agency (LRA) . Prior to the implementation of the Working Time Directive 1998 and its provisions for paid annual leave, it was common for workers, especially casual and part-time workers, to not be given paid holidays. An employer cannot force an employee to accept a pay cut. Can an employer reduce hours at work? Employers can only tell you to reduce your hours if it's already outlined in your contract saying that they can. Solicitor: Ben Jones, UK Lawyer replied 9 years ago. 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