Asked to take pay cut.

WaterWater

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My son has been asked to take a pay cut 18 months after starting work with a company. He was initally on a 12 month contract but it was let roll over and no new terms were discussed until now. The company has plenty of money. Is this allowed in Labour law?
 
Are there further details, has his job changed, less responsibility etc .....

As he has worked for 18 months at a set rate, and has been asked to reduce this rate, what reasons were furnished for this.


An employer can ask you to take a drop in pay, you are not obliged to do so, and if you were fired for refusal, would have a good case in arbitration courts.
 
Perhaps he's not delivering at the expected rate and they need to motivate him a little more? I think you need some advice on the status of the original contract and whether it's still enforceable.
 
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