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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101005
Experience:  Lawyer
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I own a private company of 16 people. We are in middle of

Customer Question

I own a private company of 16 people. We are in middle of tough economic enviornment and 6 months ago we laid off with 'better than normal' severance for 5 people. We feel we need to correct our cost struture further and are considering the option of an 'across the board' 10% salary rollback on all employees including the owners salary for a 12 month period minimum. Is this legal to do? What is advance notice we should give?
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

This will be considered constructive dismissal.

When employer fundamentally changes the employment agreement with an employee the employee can quit and sue for wrongful dismissal just as if the employee was dismissed. So it is an exceedingly risky chance to take because each one of these employees could sue you successfully.