OllyK

Does anybody know the legality of asking employees to take half pay with no reduced hours for 1 month due to the company having insufficient funds?

Not the compant I work for but one that a friend works at.

chocolate_o_brian

iTrader: (22)

Total guess shot, but I'd have thought they could request for staff to volunteer this, or onvoke a 90 day rule into the contract. I say 90 days as this was what my old employers were threatening to invoke when we voted against having 4 hours notice for enforced overtime instead of 24 hours. I would assume is the same sort of thing, I.e. a contractual change.

That's all I can offer though (from personal experience).

OllyK

I'm guessing by 90 day rule, you mean they give notice of 90 days to change of contract? Thing is they haven't got 90 days available to them. Friend is an employee there BTW, I just suspect they are getting a raw deal. Apparently redundancies aren't an option as the company can't afford to pay out the reduncancy money. I've suggested they find a new job ASAP.

cossie-nutter

iTrader: (45)

it's illegal full stop!!!

stevebt

iTrader: (8)

Our firm has cut everyones wage down to a bare minimum, that would be the only option. Failing that automatic redunancies. Its part of the times now and I know loads who have lost thier jobs.

OllyK

In some respects redundancy would be preferable as they have redundancy cover. The other issue is that by halving their salary, they would end up earning less than the minimum wage for the the hours they work for the month in question.

Assuming my maths is correct:
£5.73 * 37.5 hours per week = £214.875
52 weeks in a year = £11,173.50

Their current salary is circa £19K.