Every Tuesday we get an expert to answer your financial problems or consumer disputes. WhatsApp us here or email moneyblog@sky.uk. Today’s problem is…
My company has asked all its workers to take at least £700 a year off our salaries so they can afford the new rise in NIC the firm now has to pay – is this allowed to happen? Surely it has to be negotiated individually and can’t just happen. All of our salaries are written in contracts!
Billy Boy
To answer, we spoke to Beverley Sunderland, founder and partner at Crossland Employment Solicitors.
Unless there is a very clear clause in your contract allowing your employer to reduce your pay for working the same hours – which is very unlikely – “then any reductions to your pay have to be agreed by you and cannot be unilaterally imposed by your employer”, she says.
What questions should I ask?
- Why this salary cut is necessary – is it to keep the company afloat or is it because the increase in NI means the owners will be earning less profit?;
- Has other cost-cutting been considered? Employees…
