Reducing my pay

[Dorethy1982]

My employer is changing my salary and has proposed a 15% pay cut due to restructuring. Business justification is they wish for five people in the U.K. doing my role instead of three and want us to work closer to managers to upskill them. No reduction in work load as such or travel. They have given me both options. My notice pay is three months and an ex gratia payment of one months wages is what they want to give me if I do not wish to consent to the new role and wish to leave. Is this realistic when I am on a salary of 65k and have almost 3 years service. If I resign and put forward a constructive dismissal claim am I going to be better off?

[Kati]

tagging Ula mariefab

[ULA]

Your employer needs to get your consent for a salary reduction since an employment contract cannot be unilaterally varied by one party without the consent of the other.

You do have various options if your employer goes ahead without your consent, but you need to weigh up the pros and cons of each:

· Resign from your position

· Pursue a claim for constructive unfair dismissal

· Continue to work “under protest” but sue for compensation for the loss that you have suffered as a result of the reduction in salary

If you do not agree to the reduction in pay your employer has the option of terminating your contract of employment by giving you contractual notice and then offering you a new contract on a reduced salary. Even if you accepted the new terms you could still pursue a claim for unfair dismissal, however whether such a claim would be successful depends upon a variety of factors.