Salaried worker and Short-time working? New clause added to Contract

[PaulJoshCC]

Hi there,

At my place of work all company employees have been issued with a new Contract of Employment to sign. My query is regarding a new clause (Clause 5. Hours of Work) that has been added to the revised contract. I understand the pressure companies are under to protect themselves in the current climate, but I'm unsure how I (and others) stand as a salaried worker with the new clause below.

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5. Hours of Work
5.1 Normal Hours of Work
This is a salaried position and in keeping with the role of a XXXXXXXX you will be expected to work such hours as are reasonably necessary for the requirement of the Company's business. Your normal hours of work are 36.25 hours per week to be worked between 09.000 am — 17.00 pm Monday to Friday inclusive of a lunch break of 45 minutes which is unpaid. However, you are required to be available to be contacted outside of normal working hours in case it is necessary for business reasons to notify you of any variation in your agreed working days on shorter notice.

5.2 Lay-off and Short-time working
If there is a reduced need for employees to perform work of a particular kind on a temporary or permanent basis, or another occurrence which affects normal working, we shall be entitled to lay you off or impose short-time working for such period as we shall decide.

5.3 While you are laid off you shall not be required to work and shall have to right to remuneration subject to clause 5.6

5.4 While you are on short-time working your working hours may be reduced as we see fit and your remuneration shall be correspondingly reduced subject to clause 5.6.

5.5 We shall give as much notice as is reasonably practicable of lay-off and short-time working. Thereafter we shall give as much notice as is reasonably practicable of any further change to your hours including a return to normal working hours.

5.6 During any period of lay-off or short-time working we shall pay statutory guarantee pay in accordance with legislation in force at the time.
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My question is this: If my working hours are reduced and my remuneration "correspondingly reduced" (see clause 5.4), does this imply I'm on an hourly wage, rather than the annual basic pay as a salaried employee (as stated in clause 5.1)? Should they not be separating hours/pay, and instead be stating they may also implement a reduction in pay if working hours are reduced, which would mean issuing a revised contract stating a new salary?

It would appear by signing this contract with Clause 5.3, 5.4, and 5.6 included, I'm effectively waiving my right to the basic annual pay (which is given in an earlier clause)?

If this is an acceptable – albeit unwelcome – clause, then that is fine. But it feels as if they are mixing up salaried and non-saried work.

Thanks for any advice offered!

[ULA]

These clauses have always been part of certain industry's contracts of employment but given the current economic situation with the pandemic they are becoming more popular to be included. If this clause for lay-off and short-time working appears in your contract it operates even as a salaried employee. Short-time working is where the employer, by reason of a shortfall in work, reduces the number of hours an employee is required to work per week resulting in a reduction of salary of less than half a normal week's pay.

You should be aware that any changes to your contract of employment should have happened as a result of a consultation with you (or the union) to get your agreement to the change.

In answer to your questions:

1. There is no implication by the Lay-off and Short-time working clause 5.2-5.6 that you are not a salaried employee.
2. You are agreeing to payment under the conditions set out in 5.3, 5.4 and 5.6 if Lay-off and/or Short-time working is introduced as opposed to the payment under 5.1