Hiring new staff while making pay cuts

gol

Registered User
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11
Just wondering if anyone could advise on the following...

An employer hires 2 new staff and within 4 weeks makes an announcement that they will be applying a 10% salary cut to all staff effective immediately due to a decrease in business.

Can they really enforce a pay cut within weeks of hiring new staff (the new hires were doing the same job as the rest of the staff)?

Can this be challenged and if so how would one go about doing that?
 
The work might be there but if margins have been squeezed then unit overhead costs have to follow.
 
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