Can your wages be reduced?

Can your wages be reduced?

For a pay cut to be imposed on any employee, their consent must first be given in order for the reduction to be legal. This means that a pay cut can only be unilaterally applied across a workforce if each staff member agrees to it.

How do I dismiss an employee for poor performance?

Enable both employer and employee to explain their cases fully. Give the employee an opportunity to respond and provide an explanation for the issues raised in relation to their performance. Explore and identify the cause of the poor performance. Determine what remedial action can be taken.

Can an employee be fired for poor performance?

We now know that an employer is allowed to fire an employee based solely on poor job performance. However, knowing both why you can fire an individual and how to fire them properly can minimize your exposure to an EEOC complaint or other retaliation.

Can you lower employee’s pay for poor performance?

Ask the Expert: Can you Lower Employee’s Pay for Poor Performance? The short answer to your question is “Yes, it is generally legal to reduce an employee’s pay in order to account for unsatisfactory performance.”

What does it mean when an employer reduces your salary?

A Salary Reduction or Pay Cut is a reduction in an employee’s salary i.e., the employer can reduce an employee’s salary amount for several reasons. Salary Reduction and Pay Cuts are often made to reduce layoffs to save the resource of the company during a difficult economic period.

How can employers safely cut wages or reduce hours without?

Defending this decision would need to be supported should it be challenged under the Payment of Wages Act or in a constructive dismissal claim would require the employer being able to show that he/she is incurring losses. However the safer view seems to be that it is not possible to cut salaries/wages without the consent of the employee.

Can you lower the pay of an exempt employee?

This is especially common in union situations, which clearly spell out the pay rate for each job. You cannot lower the pay of a person whose pay rate is set by a contract without renegotiating the contract. When a pay cut for an exempt employee is temporary.

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