Salary Reduction Agreement Covid 19

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On the other hand, Article 2103 of the Italian Civil Code limits an employer`s ability to reduce a worker`s salary only as part of its ius variandi power. It does not explicitly prohibit parties (employers and employees) from self-agreeing on another set of remunerations as long as they meet the limits set out in the law and the minimum wage set out in a collective agreement for the employment contract. It is important to remember that rewards, enterprise agreements, The Fair Work Act (2009) and all annual performance evaluation requirements determine your ability to reduce an employee`s pay, even in these exceptional times. It should be noted that any policy or reduction of the country of origin in another country where you employ workers may be impossible or even legal, making it difficult to implement a single global wage reduction policy. When an employment contract sets the worker`s work schedules, an employer generally cannot change them without the employee`s consent. This must be negotiated in good faith. If the employment contract stipulates that an employer can change working time, the employer must still act fairly and reasonably before doing so. Recently, a client with employees in the United Kingdom and Canada wondered how to reduce their employees` salaries by 10%. We replied that the rules vary from country to country and that in the United Kingdom, workers` agreement is necessary if they have an employment contract in which wages are set. In the UK, you cannot unilaterally reduce a worker`s pay unless you have an explicit contractual right (which is unusual).

Even if you have such a right, this is subject to the implied trust clause, which would mean that the employer should consult the workers and inform them properly. In most cases, any reduction in wages must be unified between employers and workers. There are no concrete formalities in this regard, although the agreement is of course written down. 4. You can only choose a specified dollar amount if you reduce your salary by more than 6%. If your company has employees abroad, you need to assess how they are dealing with the expected pay cut and how you can benefit from pandemic local government grants. In some countries, there may be restrictions on wage reduction and the rules must be well known before a communication or action is initiated with a current employee. Similarly, there could be support from local communities that, at least in the meantime, would affect the need to reduce wages. Article 40 of the People`s Republic of China (PRC) Employment Contract Act implies that the employer may transfer a worker`s position with appropriate adjustments to the person`s salary and salary, if the worker is declared unable to work or if the worker suffers from a non-work-related illness or injury and is unable to do so at the end of the prescribed medical treatment period. to meet the initial work obligations.