Independent Leyton Orient Forum

A friend works in recruitment and has been working from home as instructed. Half of the company has been put on notice of furlough and the other half will have to take a 20% pay cut. She thinks she will fall into the pay cut half.

My question is can they do that? Any help or advice is gratefully received and thanks in advance for your help and advice.

I thought that in order to take a pay cut, it had to be agreed with that individual. Given the option of the two, I'd furlough if my job was administrative but take a pay cut if I was part of the management process.

Shouldnt she know seeing as she works in recruitment?

My initial thoughts were that they can't change the salary unless in agreement, which is obviously the normal way things are done.

Where's spen when you need him?

If they are working on the same terms i.e. same hours, same responsibilities, etc... then they cant just cut your wages. I dont know the in's and outs and would recommending talking to citizens advice. going through some restructures at work and being an employee rep, this website is very useful and has lots of information about the law as well https://www.acas.org.uk .

Prestige Worldwide wrote: ↑Mon Mar 30, 2020 1:45 pm Shouldnt she know seeing as she works in recruitment?

Heh. Everyone knows that a messageboard for a 4th division football team is the place for legal / employment advice

Thor wrote: ↑Mon Mar 30, 2020 2:00 pm My initial thoughts were that they can't change the salary unless in agreement, which is obviously the normal way things are done.

Where's spen when you need him?

I met him in boardin' prison recently.He's doing hard labour.

Thor wrote: ↑Mon Mar 30, 2020 2:00 pm My initial thoughts were that they can't change the salary unless in agreement, which is obviously the normal way things are done.

Where's spen when you need him?

Why haven't you asked any of your lawyer friends?

Thanks to the people who've replied so far, much appreciated. If anyone else can add to this it would be great fully received.

Max B Gold wrote: ↑Mon Mar 30, 2020 2:51 pm

Thor wrote: ↑Mon Mar 30, 2020 2:00 pm My initial thoughts were that they can't change the salary unless in agreement, which is obviously the normal way things are done.

Where's spen when you need him?

Why haven't you asked any of your lawyer friends?

I have got a message back not in the office and will get back at some point. I want to help the person concerned and as this will move really quick I'd have thought any help or info provided would be good and appreciated. A community is here to help each other at times, like some have advised above, and I'm grateful to their replies.

Would've thought that they can offer you the new terms and if you don't like em then they have to offer you redundancy.

Thor wrote: ↑Mon Mar 30, 2020 2:55 pm

Max B Gold wrote: ↑Mon Mar 30, 2020 2:51 pm

Thor wrote: ↑Mon Mar 30, 2020 2:00 pm My initial thoughts were that they can't change the salary unless in agreement, which is obviously the normal way things are done.

Where's spen when you need him?

Why haven't you asked any of your lawyer friends?

I have got a message back not in the office and will get back at some point. I want to help the person concerned and as this will move really quick I'd have thought any help or info provided would be good and appreciated. A community is here to help each other at times, like some have advised above, and I'm grateful to their replies.

No need to get all defensive mate.

Any chance you can explain how you can be grateful to a reply. Cheers.

My wife has just had her salary cut in half. She likes to work to stay away from me. Don’t think you can do anything. Surely up to the boss what he wants to pay and you accept it or walk.

80% of wages should be sufficient shouldnt it .
There are plenty who have been laid off & having to wait probably a month to 6 weeks for benefits to start, who will be receiving NO MONEY whatsoever.

Material changes of employment contract such as cutting salaries would in normal times go through an employer and employee consultancy period, similar to a redundancy process. The company management would be well advised to prepare their own business plan to support the decision in case it ends up at a tribunal. These are strange times, I am unsure if the consultancy period can be truncated due to the circumstances of many businesses seeing their cash flow fall to zero. I am by no means an HR expert but have been guided by an external HR company that supports the business I work for on a few cases where employment terms have been amended. The decision to Thurlough is I believe up to the employer under the emergency legislation.

Thanks to all. It is going to be hard across all sectors in the coming weeks with cash flow properly squeezed and business all but stopped in its tracks. We potentially are entering a period of depression as the effects will take some time to reverse.

I really feel for all the people going through this right now.

The government has removed the criminal liability on company directors who find themselves with a failing business, in normal times this kind of wage cutting would have been impossible. In the case mentioned contracts of employment need to be gone through carefully.

There are going to be thousands of functionally bankrupt companies existing in name only as they cannot trade. Whole industries could disappear for years, todays news is the Garden Centres are to close with the write-off of their whole stock, plants cannot be stored until things blow over, they and the growers face a huge loss.

Mikero

To be fair though, plants do have a habit of blowing over

A mate of mine works as a toilet attendant in the city of London , the toilets are run by the Corperation of London but he works for an agency, as the toilets have been closed will he qualify for the 80% of his wage the government have promised ?

BIGRON wrote: ↑Tue Mar 31, 2020 6:01 pm A mate of mine works as a toilet attendant in the city of London , the toilets are run by the Corperation of London but he works for an agency, as the toilets have been closed will he qualify for the 80% of his wage the government have promised ?

He needs to be "furloughed" by his employer. That means they need to write to him to confirm that and he needs to agree to that status.

If he has been then he should get paid the 80%.

tuffers#1 wrote: ↑Mon Mar 30, 2020 5:07 pm 80% of wages should be sufficient shouldnt it .
There are plenty who have been laid off & having to wait probably a month to 6 weeks for benefits to start, who will be receiving NO MONEY whatsoever.

I agree that 80% of your normal take home is not unreasonable to tide you over. However, it can be a problem for some sales people who get a very low basic and make it up to a living wage through bonuses. I know someone in this position and he's been offered 80% of basic only.

"There are going to be thousands of functionally bankrupt companies"

Todays news is that it could be over 800,000 companies.

Mikero

Thor wrote: ↑Mon Mar 30, 2020 12:20 pm A friend works in recruitment and has been working from home as instructed. Half of the company has been put on notice of furlough and the other half will have to take a 20% pay cut. She thinks she will fall into the pay cut half.

My question is can they do that? Any help or advice is gratefully received and thanks in advance for your help and advice.

So half are on furlough - not working and being paid 80% of their salary - and the other half are still working but having to take a 20% pay cut?

RedO wrote: ↑Wed Apr 01, 2020 12:11 pm

Thor wrote: ↑Mon Mar 30, 2020 12:20 pm A friend works in recruitment and has been working from home as instructed. Half of the company has been put on notice of furlough and the other half will have to take a 20% pay cut. She thinks she will fall into the pay cut half.

My question is can they do that? Any help or advice is gratefully received and thanks in advance for your help and advice.

So half are on furlough - not working and being paid 80% of their salary - and the other half are still working but having to take a 20% pay cut?

Well spotted.

I know which half I'd want to be in!