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Pay rate change

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Mdurig View Drop Down
Newbie
Newbie


Joined: 01/November/2017
Location: Australia
Posts: 2
  Quote Mdurig Quote  Post ReplyReply Direct Link To This Post Topic: Pay rate change
    Posted: 01/November/2017 at 10:42
Hi,

I work at a company where I had a contract for full time employment at 80k PA plus super.

The director came to me and stated that due to financial hardship the rate would be reduced to 60k for a while until things got better. I agreed to this verbally to do my part. it has now been 8 months and there is no change back to my original rate in sight. The company is making solid profits again.

There is no clause in my contract allowing for changes to salary nor have I signed a new contract. Is it wise to approach my employer for breach of contract or has it now been too long? can they fire me if I demand a return to 80k? if I decided to leave do I have any grounds for backpay? any advice would help.

citizen-joe View Drop Down
Senior Member
Senior Member


Joined: 09/October/2005
Location: Australia
Posts: 436
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2017 at 12:32
I'd try a verbal request to be returned to your original pay rate, now that the company is operating profitably again.

If it doesn't happen I'd be looking for a new job, and once found, resign and demand the back pay. If they say you agreed to take a pay cut, plead ignorance, remember you are still on your old contract, and there is nothing in writing about any reduction.

I'm sure you told me at the time that you agreed to a temporary reduction, that would be made up once the company returned to profitability (see you have a witness).

Mdurig View Drop Down
Newbie
Newbie


Joined: 01/November/2017
Location: Australia
Posts: 2
  Quote Mdurig Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2017 at 16:39
Thanks,

I am still doing some research before I commit to a confrontation. My boss is the kind of guy that will burn bridges and replace staff rather than working with them or rewarding loyalty as of late. I have been with the company for 6 years, maybe I should push for a redundancy. The issue is; will it be paid at contract amount, or because I have accepted the lower pay for so long does this constitute agreement to a new wage?

I might have to actually see a lawyer about this one, but happy to hear advice from anyone that has a better understanding of employment law than I do.

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