What are we exposed to if we impose pay cuts without seeking an express agreement?

Posted in : First Tuesday Q&A NI on 3 May 2011
Emma-Jane Flannery
Arthur Cox
Issues covered:

Any such change will amount to a variation of your employee’s terms and conditions of employment. Unless the contract of employment allows you to vary the terms then you must obtain the employee's consent to do this. Imposing the change without consent (express or implied) will be a breach of contract.

The employee may respond to this breach in a number of ways. Firstly, they have the option of continuing to work, but under protest or “standing and suing” i.e. making it clear that they do not consent to the change, and then bringing a claim for breach of contract and/or unlawful deduction from wages. The employees may also claim that the breach of contract is a fundamental breach entitling

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Back to Q&A's This article is correct at 02/09/2015

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.

Emma-Jane Flannery
Arthur Cox

The main content of this article was provided by Emma-Jane Flannery. Contact telephone number is 028 9023 0007 or email Emma-Jane.Flannery@arthurcox.com

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