Employer trying to cut pay

[Confuzzled18]

I’m looking for some advice on disputing an employer trying to cut none existing shift allowance.

My partner has worked for the same manufacturing company for seven years. The company operates with a standard day shift (8-4) and then an early and late shift. Those who do the early and late shift are entitled to a shift allowance of 20% their hourly rate. 18 months ago, my partner took a substantial promotion and moved from early/late shifts to the standard day shift.

When the government announced the lock down, my partner’s company furloughed all their staff. Last week, they asked my partner and a small team of his colleagues to come back to work. The company was running low on stock and was at risk of losing customers if they didn’t start operating, even at a small level.

It was explained that the company would only be operating during the day shift so those who normally received the shift allowance would no longer be entitled to it. My partner was relieved as this would not affect him.

Yesterday he received an email from HR asking him to confirm acceptance of a 20% reduction in his hourly rate. When he queried this, the HR manager replied apologising and said he was still on their files as working shifts from his previous position.

Later that day, the HR manager called my partner. She said that my partner had been receiving shift allowance and had to accept the 20% reduction. He explained that was not the case and that he had a letter from HR outlining his pay rise and it made no mention of receiving a shift allowance or being expected to complete shifts. He also pointed out that he had not worked a shift in 18 months and how a 20% reduction in his hourly rate would actually be less money than he earned before his promotion.

The phone call ended with the HR manager saying she had to speak to the MD as my partner’s manager and the HR advisor who worked on his promotion are still furloughed. She did not come back to him and my partner is due to return to work on Monday.

Returning to work in the current situation is very stressful and the worry of having his pay cut by 20% is having a massive effect on my partner. He already has very little confidence in this company due to other things that have happened over the last 18 months, including how his manager took his new contract back off him before he could sign it and never returned it. *

Does anyone have any advice on what we can do should they return still trying to enforce the 20% reduction? His hourly rate is the same as his colleagues who then also received shift allowance on top. However, he is concerned the company may say his standard hourly rate was less because he has slightly less experience despite there being no mention of progression in any of their discussions or the letter he received with his new hourly rate.
*

[Confuzzled18]

I should also add that his colleagues who worked shifts have accepted the cut of their shift allowance, but have not been asked to accept any cuts to their standard rate.*

[ULA]

Just checking my understanding, the company is asking some people to return to work but only during the standard day no shifts so pay will not include the 20% shift allowance. That I understand if this is correct.

When your partner was promoted did he received a letter/email confirming his hours of work in this new role

(I presume now just the standard day no shifts)

and the salary he was to be paid for these hours. If so and he is returning back to work from furlough on those same contracted hours it is that that salary he should expect to be paid. The 20% reduction relates specifically to the shift allowance not be required on furlough return, which he has not been part for 18 months. So if he has the confirmation letter then effectively if the company deducts his salary by 20% on his return then this would be considered an unlawful deduction of wages.*

If they have made a mistake on the promotion letter that is their issue and the only way they can try and deal with this is to consult with your partner in order to vary the terms of his employment.*

[Confuzzled18]

I should also add that his colleagues who worked shifts have accepted the cut of their shift allowance, but have not been asked to accept any cuts to their standard rate.

Thanks for replying.*

You're correct. They are asking for a skeleton crew to return in order to maintain some production, as they run the risk of losing clients if they cannot maintain stock. As it is only a skeleton crew, it is safer for them to have everyone on the day shift rather than a very small amount of people spread over three shifts.*

My partner received a letter when he was promoted. It had his new job title, rate of pay and details of a probationary period. There is no mention of hours of work or shift allowance. He should have received or signed a new contract and job description but never did despite asking for it.*

He's consulted with his colleagues who do work shifts and therefore receive the shift allowance. They have confirmed they receive the same hourly rate as my partner plus 20% on top. They've been told when they come back they will receive the same hourly rate as in my partner's promotion letter.*

My partner has emailed the HR manager stating he will be in work tomorrow, but that he still disputes the 20% reduction. He's also asked for a copy of his contract and job description.

We're hopeful it will be sorted tomorrow but I don't know what to do if the stand their ground. He can prove that he has exclusively worked on the day shift since his promotion (as is normal for the people on his team) so surely if he was being paid shift allowance they would have picked it up in the 18 months?

Being asked to return to work during a pandemic is really worrying, facing that return with a potential 20% loss is horrible. He's not doing great tbh.

[ULA]

Sorry i have not been around today. Would be interested to know whether this was resolved when he went into today.*

[Confuzzled18]

Hi, not to worry at all.

The issue was not resolved yesterday, my partner's email on Sunday hasn't even been replied to.

Within 50 minutes of them opening their doors, my partner's colleagues, who previously worked shifts and got the shift allowance, were kicking off. They actually have copies of their contracts and had found it to say that the company must give a month's notice for any changes in pay. The company has arranged a group meeting for the skeleton crew on Wednesday, but this wont address my partner's issues as he shouldn't be receiving any changes to his pay, regardless of if it would be in a month's time or not.

Some of his colleagues are questioning if the company is still claiming furlough for them because that is also a 20% reduction in pay. Plus, they were only technically furloughed for two weeks and apparently the min is three. The rest of the time the factory was closed came out of their holidays but the company said this was temporary and would be returned once the furlough came through. It all seems unnecessarily complicated.

I really don't know what the next steps are. My partner will be going in to tomorrow's meeting unarmed because he doesn't have a copy of his contract. Surely there must be a requirement to provide when asked for within a certain period. If I've ever misplaced mine, the various HR departments at each company responded within 24 hours.

[Confuzzled18]

No one from HR was at the meeting today but essentially the MD said that they would be paid 'as normal' for the next five weeks and then have to lose their shift allowance.*

My OH tried to speak to the MD about how he didn't get shift allowance and hadn't received a copy of his contract and got fobbed off basically.*

Still no response to his email on Sunday to the HR manager. He's going to follow it up tomorrow if nothing happens. At least he's got five weeks to argue it before they force a change. Just not quite sure what the next steps are if they try and enforce the 20% cut.

[ULA]

So the rules of furlough are that staff have to be furloughed for a minimum of three weeks, however my understanding is that there seems to be no reason why holiday cannot count toward the three weeks furlough. What does have to happen though is that the employer has to top up the 80% reimbursement from the CJRS scheme to 100% for the days that were taken as leave.

Incidentally when the factory was closed was your partner given double the amount of notice to take holiday as the holiday leave taken. This is still a legal requirement when a company is asking an employee to take holiday even with all the recent amendments to help support in the current coronavirus crisis.

I would suggest that initially your partner follows up the request to the HR Manager with a chaser email and copy this into the MD. Give it a few days to see if there is a response and if not then he may need to consider raising a grievance.

However I would suggest taking it a stage at a time and you can always come back to this thread for further guidance.*
*

[Confuzzled18]

When the factory was closed they were given four days notice and even that notice was dubious. The message they got was that they may have to use holidays depending on what the govs info about the furlough scheme was.*

I think they've suffered from a distinct lack of leadership and HR/employment law advice as no one seems to know what is happening.*

He emailed on Sunday and will chase up tomorrow if they still haven't responded. Don't think it should take a week to send someone their contract at the very least.*

[ULA]

I can appreciate that back in March, particularly once the CJRS was announced, there was a lot of trying to establish how the scheme worked alongside current employment legislation and it was a confusing picture even for those companies that had HR departments.* The ongoing situation is also difficult for many companies, however they should try and communicate with their staff as best they can given what they know at the time, even if that situation changes.

I agree that they should be able to respond to a request for a copy of an employment contract so hopefully a chaser, if copied to the MD as well, will see it being sent.*

Keep us updated and you know where we are if you have any further questions.*

[Confuzzled18]

So I have a bit of an update but not much of one.

My partner followed his email up to the HR Manager and MD but didn't get a reply. The general manager did briefly speak to him (on the factory floor in front of his colleagues!!). He asked what the issue was and my partner explained. He seemed to understand the problem and agreed that if they had put him on a staggered pay in line with progression as he was new to the job, it would have been in that letter. He also said my partner only needed to work shifts and confirmed his rate was the standard across the team without shift allowance. He said he'd arrange for a copy of his contract that day but this was Monday and my partner still hasn't received it.

The conversation sounds fairly positive but the GM's overall response was he'd 'see what I can do' which isn't reassuring.

Fortunately, the company are doing everything they can to keep the teams who are back safe. I'm not sure how this will be maintained when they start bringing more people back in but so far it's positive. Was a bit of a shock to find a face mask in my partner's work trouser pocket though. Suddenly felt a bit more real.

However, I honestly don't know why it is taking this long to get a copy of a contract that was created 19 months ago.

[ULA]

Thanks for the update. I agree about the length of time taking to provide a document that should be held either electronically or in a paper file. Wonder whether your partner should give it a week and then if not contract materialises he asks the GM in Monday when it will get the copy.

[Confuzzled18]

Still no resolution on pay or contract.

They had a meeting last week to discuss them increasing their hours (7.30am to 5.30pm) and closing on Fridays so to increase effectiveness now they don't have the early or late shift. Everyone was fine with this but when my partner asked about his contract/personal situation he was fobbed off again.

It really shouldn't take this long.

[ULA]

His next course of action may now be to raise a grievance.

[Confuzzled18]

We thought we were getting somewhere mid-week. After emailing the HR Manager saying he still hadn't heard anything despite asking several times she replied that she would arrange for a paper copy (no idea why) of his contract and JD to be with him yesterday. She also said he would hear back with their decision regarding his role by the end of the week.

That hasn't happened and with the factory closed on Friday's he's not going to hear anything until he can chase after the bank holiday.

It's so frustrating