My husband has just informed me that everyone in his company has been told at a meeting this morning that their pay is to be cut by 2%.
I’m not fully 100% conversant with the law on this issue so would appreciate some confirmation.
I am sure that this cannot arbitrarily be done without signed agreement from all concerned (unless specifically in the contract of employment – it isn’t) and amounts to an unfair deduction from wages under the Wages Act.
This cut is to be with effect from 1 March.
Surely this makes the company in breach of contract. If he decides to make a claim at tribunal – will he need to resign? Is it worth him challenging this?
I do understand the reasons behind this cut, but even in these extreme circumstances a company must act legally.