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Do you have to accept a Pay Cut?

Glen Dimplex Boss Sean O’ Driscoll – calls for five year pay freeze…
In the news this week, Sean O’ Driscoll the manager of one of Irelands leading manufacturing companies stated that a five year pay freeze is needed in order for Ireland to regain its competiveness.
What do you employees and employers in the manufacturing sector think of that idea?
His reasoning behind this suggestion is the belief that “We pay ourselves too much” and the idea that “a five year pay freeze will replenish the country and allow us to gain our competiveness” and do you know what? He might just be right!!
Pay freezes and reductions can affect employees both financially and mentally. However employees may find themselves in a situation whereby they have no choice but to accept a pay freeze or cut in order to stay in their employment. It works the same on the employer’s side; they may have no choice but to reduce your level of pay in order to ensure the survival of the business in these difficult times.
If you as an employee have been asked by your employer to take a pay cut it is important that you firstly ask your employer what exactly your new wage will be and also how it will affect your other terms of employment.
You do not have to agree to accept the proposed pay cut however your employer can make you redundant as a result. Your employer can only do this if he has strong evidence that a redundancy situation does exist, otherwise you could be eligible to take an unfair dismissals claim against your employer.
If your employer insists on reducing your pay you may also feel that you have no choice but to leave your employment. If this is the case then you may be able to take a case for constructive dismissal against your employer. However it is important to note that cases of constructive dismissal are often hard to be successful in.
If you find yourself in a position whereby your employer is proposing that you accept a pay cut or have previously been given a pay cut without your agreement contact us today or visit our website for more information on your employment rights!!
For more information about your employment rights please email info@employment-matters.ie or log on to our web site www.employment-matters.ie or call 051 850660 Now.