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Anonymous asks:
Salary Cuts

My company has singled me and some others out for a salary reduction. No other staff have been advised of cuts. I have received a salary increase 2 months ago with a letter from our group managing director (signed). They also want to move me to a sales position entirely different to what what I currently do as an IT administrator which I was employed as. At the same time the company has hired new staff at much higher salaries than myself. What are my legal options?

Roy Bregman says:
Roy Bregman

I presume that your company has a grievance procedure. If so, follow it by complaining through the appropriate method and channel. If not, take up your concerns with your HR department. All else failing, consult a labour lawyer.



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Karl Marais said:

Are salary cuts legal
Good Day,

Our senior management (of whom I am part) were recently given the option to take a reduction in salary or look at retrenchment. I chose retrenchment. The company supplied me with a letter to sign. There were several omissions in the letter regarding payouts. After 3 weeks of negotiating (my notice period is end of September) the CEO let me know that the company could not afford to retrench me if they had to pay out what was owed and so they were going to create a new position for me, but at a reduced salary. Can they legally do this at a lower salary. On a related note, I spent the past 3 weeks looking for alternative work and there is a very good chance that I have secured an opportunity at a company for a higher income than what I was earning at this company. If I choose to take this job, can my company withdraw my severence pay?
 
September 26, 2009
Votes: +0

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