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Change to terms and conditions - various responses
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HR Executive Moderator
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Aug 30, 2007 11:51 PDT
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Hi
The reason for the reduction is that the business is not doing as well
as expected after making various changes and spending a lot of money.
The consultants are permanently employed. The notice period of the
intended change is 6 weeks. Also this is close to the end of the year -
a difficult time to find other employment, so they do not have many
options (if any).
The reduction is two thirds of the salary of the consultants. Meaning
they will only receive one third of their current salary.
Your comments are appreciated.
Charmaine
-----Original Message-----
From: HR Executive Moderator [mailto:watk-@vodamail.co.za]
Sent: 17 August 2007 09:04
To: hrexec-@topica.com
Subject: [HR Executive] Change to terms and conditions - various
responses
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HR Executive Discussion Forum
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Dear Charmaine
It is very difficult to give some guidance on your question as no
background information regarding the matter is provided.
I will however try respond by indicating that Salary paid to an
individual forms part of the conditions of employment under which the
services of the employee was secured hence is a Contract of Employment
between the individual and employer hence cannot just be changed
unilaterally.
Technically this suggests that employer can't just reduce the salary of
those consultants as it would constitute an unfair labour practice.
If the consultants in question are part of permanent staff members then,
the employer may follow the operational route which suggest that their
position may be declared redundant based on operational reasons hence
the individuals may thus become redundant which implies that they may be
eligible for possible retrenchment.
The employer will have to consult with them and give them all the
relevant information surrounding the reasons for the specific action the
employer intends to take. The normal notice period including
consultation is 90 days.
The employer may then after consultation and getting their
representation only retrench them or offer them alternative positions
with lesser salary and if they refuse then they may be retrenched in
accordance with the requirements of the Basic Conditions of Employment
Act which determines that a minimum of one week for each service year
completed with employer must be payable.
If it happens that on consultation they agree to reduced salary then the
employer may be fortunate but it is not safe as they may later change
and feel that they were unfairly treated and may institute a case of
unfair labour practice against the employer at the CCMA/Labour court
which will in all probabilities rule in their favour despite the fact
that they initially agreed.
Labour Courts normally test whether the decisions taken by employers
were just and fair and if it happens that the individual agreed to a
decision because he/she had not options, then the court will probably
rule in favour of the employee.
I would suggest that the company consult with consultants specializing
in labour matters such as LabourNet prior to taking any decision as
incorrect decision may cost the organization fortune.
That's my opinion based on my IR background
Hoping you get suitable and amicable solution to your challenge
Regards
Phillip Pitse
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Charmaine,
Why is he reducing the consultants salries??
Regards
Louis Titus
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Hi,
Are the two consultants on a fixed-term or indefinite-term contracts?
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Hi
According to my knowledge no change can be made to any salary without
the written consent of the employee's. What are the circumstances in
this case - why the reduction?
Elsabe
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-----Original Message-----
Subject: [HR Executive] Change to terms and conditions
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HR Executive Discussion Forum
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Hi
Can someone please advise me: We are a Consultancy business and the MD
wishes to reduce the salaries of two consultants with effect from 1
October 2007. How long notice should the consultants be given and is
this legal if the consultants do not agree to the reduction.
Charmaine
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