Reduction In Pay Agreement

As you know, the recent economic downturn has had a negative impact on Broadway Inc. In order to increase cash flow and limit layoffs, the company decided that wage reductions were needed at this stage. You can use an alternative on a trial basis for up to 4 weeks. If the alternative involves a 50% or more reduction in working time or pay, work under the new scheme will not be considered an acceptance for up to 52 weeks. If you are an employee who is not protected by a collective agreement or an employment contract, there is no set amount to pay. However, employers cannot lower wages below the minimum wage in their state. Workers with individual employment contracts or guarantees under union contracts are generally protected from wage or wage reductions during the periods covered by these contracts. In these situations, an employer cannot arbitrarily reduce your salary or change your working time. If your employer asks you to work fewer hours or reduce your salary, this is a change to your employment contract. Any changes to your employment contract must be agreed by both you and your employer. In deciding whether or not to accept a reduction in working time, there are a number of issues that must be taken into account: at will employment means that workers who do not have a formal employment contract or who fall under a collective agreement may be dismissed, downgraded and reduced or paid at the discretion of the company. If your employer proposes to reduce your working time or salary, this is a change in your terms of employment.

You can accept the discount for the reasons described above. At the company level, enterprise agreements are concluded between employers and employees regarding the conditions of employment. It sets minimum conditions for employment and national employment standards are still in force. If an employer uses a registered contract, the premium does not apply. If you don`t agree with this reduction, you have a number of options at your disposal: it`s important to remember that bonuses, enterprise agreements, the Fair Work Act (2009) and all annual performance verification requirements determine your ability to reduce an employee`s salary, even in these exceptional times. Do you expect a shortening or payment in hours? When your employer reduces your salary or schedule, you will usually receive a letter decrying the change. The letter probably explains that there will be a reduction in salary, with details on how much salary will be reduced and when the reduction will come into effect. Wage reductions for reasons contrary to public policy are also not legal. For example, a worker`s work schedules or wages cannot be reduced if they take a break from jury duty, National Guard service or whistleblower with respect to an employer`s harmful acts to the public. If you decide to refuse this salary reduction, from today you will be removed from your position for one month with severance pay.

Companies cannot target workers for wage reductions based on race, age or other protected classes, in accordance with discrimination laws. Minimum wage: in some cases, an employment contract or employment relationship says that a worker is paid the “current national minimum wage.” If this is the case, the employer may reduce the worker`s pay based on minimum wage rates. In other cases, there may be a provision in the contract for a reduction in wages. If not, your employer cannot reduce it without your consent, as it would change the terms of your employment contract.

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