Asked to take pay cut.

[WaterWater]

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?

 

[shipibo]

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.

 

[WaterWater]

They seemingly want to cut his basic pay but increase his commission on sales.

 

[extopia]

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.