Do I have to take a pay cut?

EACH month Joanne Lezemore, senior lawyer from Which? Legal Service answers your questions and offers advice.

Q: “I've been told I've got to take a pay cut - can my employer do this?”

A: Given the continued affects of the credit crunch on businesses, many staff may have been threatened with pay cuts, or indeed may have already had their salaries reduced during these difficult times.

Understanding your legal rights at work means you can deal effectively with any problems as soon as they arise, rather than having to figure out what to do when you’re already in a stressful situation.

There is a common misconception among employers that they can change terms of employment where they feel necessary, often by providing 30 days notice - but this is simply not true.

An employer cannot change any terms of your employment unless:

1. Your contract of employment has an express clause giving your employer the right to change your terms on notice;

2. There is a union and your contract of employment incorporates ‘collective bargaining’. This means that you will be bound by what is agreed with the union, regardless of whether or not you are a member.

If your employer tries to force a pay cut and does not have the legal authority to do so, then this amounts to a ‘breach of contract’ and you could consider the following options:

1. Consider yourself constructively dismissed (so that you leave your employer without notice) and bring a claim for unfair dismissal in the Employment Tribunal (if you have worked for at least a year);

2. Continue working under protest and bring a claim in the Employment Tribunal against your employer for an unlawful deduction of salary.

You should seek legal advice before taking either step and this can be obtained from Which? Legal Service or the Citizens Advice Bureau.

Which? Legal Service, set up 40 years ago, offers over 50,000 members unlimited expert consumer and employment legal advice by phone or email from experienced lawyers at an affordable price. The service, based on Gascoyne Way in Hertford, covers a wide range of everyday topics, including employment issues, holidays from hell, cowboy builders, parking fines and how to return faulty goods. Which? Legal Service has also launched Which? Wills, an easy and affordable online will writing service fully supported by telephone access to specialist wills solicitors.

For more information, visit www.whichlegalservice.co.uk or call 01992 822 828.