Do you expect a discount or payment in working hours? When your employer reduces your salary or schedule, you will usually receive a letter outlining the change. The letter will likely explain that there will be a pay cut, with details on how much the salary will be reduced and when the reduction will take effect. Companies cannot target workers for wage cuts by race, age or other class protected by discrimination laws. The National Minimum Wage and National Employment Standards (NES), which are included in the Fair Work Act 2009, are the minimum rights for workers in Australia. A contract, employment contract or company agreement cannot provide for conditions below the national minimum wage or the NES. The national minimum wage for non-premium workers and for workers covered by a modern bonus or company agreement is reviewed annually by the Fair Work Commission. The Fair Work Board may set different minimum wage rates for different jobs, depending on the age of the employee and how the employee is classified under an indemnity or company agreement. If the employee agrees to a wage cut, you cannot lower their wage below the national minimum wage or the minimum amount required by a bonus or company agreement for the employee`s work, as you risk underpaying them. Even if you and your employee agree to lower their wages, there are still enforceable restrictions as follows: When employers lower wages, they are required to do so fairly.
Wage reductions for reasons contrary to public policy are also not legal. For example, an employee`s hours or salary cannot be reduced if he or she takes time off to serve on a jury, serves in the National Guard, or denounces in connection with an employer`s actions that are harmful to the public. In answer to the above question, yes, you can ask your employee to take a pay cut, but no, they don`t have to accept. If they do not agree, you must pay them the full amount of their normal working hours as stated in their employment contract, even if you do not have work to do for them. In general, an employer cannot unilaterally reduce an employee`s wage rate without the employee`s consent. As you know, the recent economic downturn has had a negative impact on Broadway Inc. To increase cash flow and limit layoffs, the company has decided that salary cuts are needed at this time. A salary reduction is a reduction in an employee`s salary. Wage cuts are often made to reduce layoffs while saving the company money during a difficult economic time.
A reduction in salary may be temporary or permanent, and may or may not be accompanied by a reduction in responsibilities. Some salary cuts also affect an employee`s increases, bonuses, and benefits. If you are an employee who is not protected by a collective agreement or employment contract, there is no fixed amount to pay. .