Temporary Salary Reduction Agreement

I refer to our [insertion date] meeting on whether you agree to accept a reduction of [amount] per [anjahr/month/hour] to a new [insert] rate per [annum/month/hour]. If you are willing to participate in the salary reduction program, please fill out your information below and send this form to [insert the name] by [insert a date]. If you have any further questions about this, please contact [Enter the name and contact information.] In Greece, the employer cannot unilaterally reduce a worker`s salary. The employer and the worker may agree to a reduction in the contractual salary, but in all cases the salary must not be less than the legal minimum wage. In the face of the coronavirus crisis, current legislation allows employers to unilaterally grant 50% of their staff a ”rotation”, thus reducing their wages as long as the measures are in place (but at least no more than six months). Under this measure, any employee in the job must work at least two weeks per month. Job rotation was also an option before the coronavirus crisis, but employers could not impose it unilaterally, or if the company faced serious financial problems, the employer had to conduct an information and consultation procedure with workers` representatives before implementing the rotation of employment for up to nine months. The Portuguese trade union confederation CGTP-IN believes that the measure entails costs for the worker – whose salary is always reduced – because he works fewer hours or because his contract is suspended. A wage deduction is a specified amount deducted from an employee`s monthly salary.

Some deductions are mandatory, such as social security and federal income tax, while others are voluntary, such as pension and health insurance premiums. The letter informs the worker of the amount of the proposed salary reduction and the effective date of the amendment. There is also an employee approval form, which specifically approves the salary reduction. A pay cut is not the same as a wage deduction. A pay cut is when a worker`s salary is reduced by an agreed amount before existing public and federal taxes are deducted. A reduction can occur when a company introduces cost-cutting measures, when an employee reduces his or her work time, or when an employee changes roles. If we do not receive enough employee shareholding in the wage reduction programme, we have no choice but to consider setting up a redundancy programme that could lead to temporary redundancies. Changes were made in 2012 to facilitate the implementation of the measure by employers. To initiate the temporary redundancy, the right-hand company must inform the staff representatives, but the agreement of these representatives is no longer necessary and the written notice has been reduced from 10 days to 5 days. 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.

4. You can only choose a specified dollar amount if you reduce your salary by more than 6%. The reduction should not be less than the minimum wage. Since July 1, 2018, the Fair Work Commission has increased the minimum wage for workers over the age of 21 by 3.5% to $719.20 per week, or $18.93 per hour for full-time and part-time workers and $21.61 per hour for casual workers. It depends, of course, on the age, experience and position of an employee in your company. 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 p

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