How To Reduce Employee Salaries

Table of contents:

How To Reduce Employee Salaries
How To Reduce Employee Salaries

Video: How To Reduce Employee Salaries

Video: How To Reduce Employee Salaries
Video: How To Pay LESS Taxes for Annual Salary Job /W2 Income (2020) 2024, December
Anonim

Some employers are forced to cut wages for their employees, for example, to avoid business collapse. But how do you document this? Indeed, according to the Labor Code, the deterioration of working conditions entails some problems on the part of the labor inspectorate.

How to reduce employee salaries
How to reduce employee salaries

Instructions

Step 1

The first thing you have to do in case of a decrease in wages is to notify the employee in writing, but this must be done two months in advance. Also, be sure to clarify the reasons that led to this situation.

Step 2

Then he must write a statement addressed to the manager that he agrees to the reduction in wages.

Step 3

After that, make changes to the employment contract using a supplementary agreement. In it, also indicate the reasons and new conditions. For example, you can prescribe that any obligations are removed from this employee (record keeping, office life support, etc.). It is also possible to reduce wages based on a shorter working day.

Step 4

Draw up an additional agreement in two copies, keep one of which in your hands, and pass the second to the employee. This document must be affixed with the signatures of both parties, as well as the seal of the organization. As a rule, this method of reducing wages is too risky. An employee can sue for worsening working conditions, then you will have to restore your previous wages, and, possibly, pay some kind of material compensation.

Step 5

Some organizations use demotions to reduce wages. That is, you can offer the employee another vacant position, thereby reducing the previous one. This must also be done by means of a notification, and later an additional agreement must be drawn up.

Step 6

If there are no vacancies, then there is a way out. You fire an employee, later create a similar position in the staffing table, but with a lower salary, and re-hire the employee.

Step 7

Of course, you should do all of the above procedures only with the consent of the employee himself. As a last resort, if he does not agree and you cannot provide him with such a salary, you can fire him by reducing his position.

Step 8

For any movement among the staff, draw up an order to change the staffing table. Then change it too.

Recommended: