Wage Reduction Agreement

Companies cannot target workers for wage reductions based on race, age or other protected classes, in accordance with discrimination laws. Do you expect a shortening or payment in hours? When your employer reduces your salary or schedule, you will usually receive a letter decrying the change. The letter probably explains that there will be a reduction in salary, with details on how much salary will be reduced and when the reduction will come into effect. If you want to reduce an employee`s pay, you need to make sure the reasons are ethical. If your business is forced to cut costs due to a slowdown in COVID-19 activity, it would make perfect sense, especially if the reduction is temporary. Wage reductions for reasons contrary to public policy are also not legal. For example, a worker`s work schedules or wages cannot be reduced if they take a break from jury duty, National Guard service or whistleblower with respect to an employer`s harmful acts to the public. Section 324 of the Fair Work Act 2009 allows the employer, in certain circumstances, to deduct a certain amount from a worker`s salary. These circumstances require the worker`s consent and written consent of the specified amount, and the deduction must be granted in the first place to the worker, for example.B. Training costs The deduction may also be authorized under an enterprise agreement, award, by legislation or by court order, for example.

B deductions for child care. Employers can only deduct wages due under the premium. They cannot deduct other rights due to the worker, such as cumulative annual leave.B. If you decide to refuse this salary reduction, from today you will be removed from your position for one month with severance pay. If you are not protected by an employment contract or collective agreement, your employer may reduce your salary and work program at any time, with certain restrictions. If you are a worker who is not protected by a collective agreement or an employment contract, there is no set amount to pay.

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