With-holding annual increments - Legal?

susan12

Registered User
Messages
27
I have asked a similar question before but it is now more pressing and I hope someone can help.

I work in the third level sector but outside the HEA i.e. not a uni or institute of technology however we are linked to one of the uni's for our terms and conditions of employment.

Essentially the organisation, which is a not-for-profit, told staff that they were implementing a pay-freeze and would be looking for changes in work practices and a pay reduction. The business case for doing so is very weak - the organisation is doing well with a very small deficit recorded in the past year (<100k).

My contract of employment states that my salary will be reviewed on an annual basis. We currently have an incremental pay scale and to my knowledge this has always, without exception, been applied irrespective of performance to all qualifying staff, as is custom and practice in the sector. I had a review which was extremely positive and so sought to have my increment applied only to be told it was with-held.

My question is, can an employer with-hold an incremental payment? I know they cannot unilaterally implement a pay cut but what is the story with increments? I see this as tantamount to a pay cut given that it is enshrined in my contract of employment and has always been given to all qualifying staff.

I am not unreasonable - I would be open to a pay cut or changes in work practices to ensure employment however the company has failed to put forward a compelling business case and I suspect that it is using the downturn to undo some bad policies of the past. There is a union in the organisation however it does not cover all staff and I am not a member.

Any advice would be great or direction to relevant legislation or case law on this would be much appreciated.

Susan
 
If every one on the same contract received confirmation that the change was happening you have very little chance of overturning the decision, regardless fo the legalities. Whatever about case law, there is plenty of precedent out there for it at present.

Take a further look at the company's case. A small deficit last year could become a very big one this year based on the economy.
 
Thank you for the replies thus far. The company's case for seeking to with-hold the increments is really a side issue I guess - I'm just wondering if they can do it legally. As I say I know a company cannot reduce your pay without your consent/agreement (even if some do try). My question is can a company with-hold an increment without your consent/agreement?

Lots of companies out there still operate an incremental pay scale so I'm wondering if anyone else has had a similar experience and what that was.

Thanks again for your help

Susan
 

Didn't RTE do it? As far as I know the clerical grades have the same salary scale as the CS/PS. If they could legally do it then I say there is scope for your employer. The statement in your contract that your salary is reviewed annually would also give them some scope in my opinion.

I'm in the HSE and increments are granted annually unless there is a performance issue.
 
Yeah its seems a bit of a grey area to be honest. Custom and practice in our sector is for increments to be granted annually upon successful performance review - I had mine and it was excellent, hence the question. I really do see it as a pay cut as I have a reasonable expectation of receiving that increment. My partner is facing a large pay cut and we have four children so the costs are mounting, as they are for everyone. I guess I just wanted to know what the legal position is before I agree to anything.

Susan
 

Not only did RTE pause the payment of increments all staff earning above 40k were subjesct to a pay cut ranging from 5% upwards. I'm not trying to be smart OP but if it's only the non payment of an increment (which in effect is a pay rise) I'd be considering myself lucky with the way things have gone for other less fortunate employees.