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Post Info TOPIC: Can you move a salaried employee to hourly rate?


Guru

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Can you move a salaried employee to hourly rate?
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Hi do you know if it is allowed to move a salaried employee to an hourly rate? there is no employment contact. The reason for the change is that there is not enough work. I don't know if it makes an difference but it's farm work.

 

Thanks in advance for any help on this

 

Rachel



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Rachel



Master Book-keeper

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Hi Rachel
You need to be careful if you are offering advice in this area as it is legally very complex and probably not covered by your PII.

It is worth mentioning that just because there is no WRITTEN employment contract does not mean there is no contract. This is a prime example of when a written contract should be in place given the seasonal nature of the work.

If an employer makes a change to such a contract without gaining the agreement of all the employees, then those employees have a right to:-

- refuse to work under the new conditions
- say that they are working any new terms under protest, and are treating the change as a breach of contract
- resign and claim constructive dismissal
and ultimately then be able to take a case to an employment tribunal

(timeframes exist for this route of action)

If an employee disagrees with any new terms and conditions but doesnt say or do anything, this MAY be considered as agreeing to the changes. But great care needs to be exercised as they could later claim they were bullied into such action.

If employees do not agree some employers may consider ending their contract and then re-employing someone on new terms and conditions. But then the employer must follow another legally required route as this is classed as 'redundancy'. If they follow this route and employ someone else doing the same role then the former employee may still have a case for a tribunal case.

I would suggest that the only advice you provide in this regard is for your client to obtain proper legal advice to ensure this is all completed properly - with everything completed in writing so every party has proof of what has been changed and agreed. A good place to start is with ACAS who provide a free service and will certainly point your client in the right direction.



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Guru

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Posts: 625
Date:
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Thank you very much for your reply Joanne, much appreciated. I've told him I can't advise him at all on this. This particular client is always asking me to do things or asking advice on things I don't know anything about, he assumes it's my job and I should know all of this!!

Thanks again for your detailed reply.

Rachel

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Rachel

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