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Thank you for your question. Do you have have a written contract and, if so, was the pay (prior to proposed reduction) expressly stated in the contract?
Please also state how long you have been employed with the company.
As I advised, it is for a relative, but I believe she has a contract, other than this i have no more info at present.
I was aware that you referred to a relative, but you used first person when writing so I was a little confused.
A reduction in pay can often be grounds for constructive dismissal (ie. where the employers breaches a term of the the contract (or otherwise acts in a way to destroy the mutual trust and confidence between employer and employee) entitled the employee to treat himself as dismissed. If eligible they could then pursue a claim for unfair dismissal.
In order to be eligible to make an unfair dismissal claim an employee must be employed for one year with the employer. Until then the employee can be dismissed for any reason (good or bad) and as long as the employer has provided the appropriate notice and has not breached the terms of the contract then no claim will lie.
Can you please check the contract and find out the length of time your employer has been employed for and get back to me?
I'm afraid I have to go offline now, but I will be able to get back to you tomorrow morning.
Many Thanks for your help on this, I have passed it on, and she is going to check it out, discuss with colleagues and will decide what she wants to do next.
Thank you for your accept and kind bonus.
I think I should draw your attention to the possible consequences of all employees to refuse the reduction in pay. This could potentially lead to a risk of redundancy. Under employment legislation the length of time an employee must have been employed at a company in order to be eligible for a redundancy is two years (as opposed to one year to be eligible to make a claim for unfair dismissal).
I just thought that your relative should know this before she considers her position, she should attempt to balance the two concerns
Feel free to get back to me once your relative has confirmed if she has a contract, whether that contract states her pay and how long they have been employed at the company.