Reducing Salaries

Posted in : How do I handle it NI on 21 August 2012
Patricia Rooney
Issues covered:

Our Company’s profits have decreased in the present economic situation. Rather than redundancies, we are thinking of reducing salaries. Can we do this?

Patricia Rooney writes:

The starting point in dealing with a query such as this is to examine the employee’s contract of employment and the employer’s rights contained there. Does the company have a clear written power to vary terms and reduce salary?

On occasions, a contract of employment states that the employer will only give notice of changes, rather than reserving to the employer any specific power to amend or vary terms and conditions of employment. In considering the contractual rights of an employer to change an employee’s entitlements

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This article is correct at 06/08/2015

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Patricia Rooney

The main content of this article was provided by Patricia Rooney. Contact telephone number is 028 9055 3300 or email

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