Can my employer reduce my salary without my consent? The recent trend of employers reducing employee salaries without the employee’s consent has caused a lot of confusion and concern.
Many people believe that this is a violation of their right to fair compensation. However, there is no clear definition of what constitutes “reducing salary without consent.”
This blog post provides an overview of the different types of illegal reductions and how they can be constructed as a violation of employees’ rights.
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Can My Employer Reduce My Salary Without My Consent?
Most employees look forward to that day of the month when they receive their salaries, but they don’t ever imagine that their employer can reduce salaries without consent.
With the rising inflation, the pandemic, and the cost of materials in today’s world, the reduction of an employee’s salaries without contest can happen at any time.
However, in some states, it is illegal for an employer to reduce salaries because employee consent is necessary whenever there would be a salary reduction on their pay.
Remember, an employment contract needs to be approved by the employer and the workers. Ne party cannot approve an employment contract.
If a company decides to reduce an employee’s salary with their consent, there are ways the worker can react to this decision.
- The employee can resign from their job position
- The employee can write a claim for an unconstructive reduction of salary.
- The employee can decide to sue the company for the loss of their salary deduction. They can also hold a constructive protest with other workers in the firm.
Therefore, as an employer or a manager before you reduce your employees’ salaries, ensure you and the workforce have agreed and come to a compromise.
So that they would be aware of the change that’s coming. This way, your decision would not obstruct the normal working process of the company.
Because an employer cannot compel his workers, to work at a payment rate that they are not comfortable with and you cannot force the company to pay you at a rate they don’t find pleasant.
With the recent inflation and Covid19 Pandemic, workers are more open to a salary deduction than the alternative of being laid off from duties.
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When Can My Employer Reduce My Salary?
As stated earlier the Covid19 pandemic crippled some companies. Most companies are finding it hard to stay in business.
In other to remain in business, some employers all over the world were forced, by the economic situation to reduce their workforce.
Due to inflation, many companies prefer laying off workers and reducing salaries to completely shutting down their business.
However, an employer must be aware that a salary reduction harms the self-esteem and finances of their workers.
The employer shouldn’t think of a salary reduction if the company can pay her employee without stress.
Rather, you should increase their pay from time to time to boost their workers’ attitude to work.
Al employees whether full-time employees, salaried workers, and even hourly paid employees are subject to a salary reduction without consent.
Furthermore, most employment contracts include payment methods and patterns of deduction and reduction.
Public employers are usually more intermittent on salary reduction because the company has set up rules and regulations that guide a worker’s employment.
When Is It Illegal For My Employer To Reduce My Pay?
As stated earlier in this post, some states find it offensive when employers reduce the salary of an employee without going through due process.
Below are some illegal cases of salary reduction.
1. No Information Was Given To You Before The Reduction.
Managers are required to hold some form of meeting with their workforce before a salary reduction.
2. When You Have Your Employment Contract In Place.
This is more applicable to employees in public offices because their employment contract clearly defines their promotion method, payment rate, and the process of termination.
3. If The New Payment Is Lower Than The Minimum Wage.
You can file a case against your employer if your new payment is below the minimum wage.
4. Discriminatory Reduction Of Salary.
You can also file a case against your employer if the salary reduction is discriminatory.
For instance, if all black people salaries were reduced and that of the whites remained the same or was increased, it is considered an illegal act.
Salary Reduction In Response To An Inhuman Activity.
If an employer reduces your salary because you complained about the conduction of the office it is considered an illegal act.
In addition, if you received a reduction in retaliation to a sexual harassment report you made to the company, it is also considered an illegal act.
What Can I Do If My Company Reduced My Salary?
If you are in this situation, you can file a case against the company with the labor department in your state.
This is not a guarantee that you would get the justice that you desire because some states don’t have laws against an unjust salary reduction.
Even if you might not get everything you desire, you can at least get some compensation so you don’t lose on both sides.
However, before you report this matter to your state’s labor force ensure you have discussed this issue with your employer.
Creating a case against the company should be your last option.
If your employer can reduce your salary without your consent. It is best to follow up on the matter without due process
Nonetheless, a reduced Salary may not be a great thing, but it’s better than no salary and no job at all.