Necessary cookies enable core functionality such as security, network management and accessibility. But its important to explain each and every point, providing clear details on the situation: For the sample letter to reduce hours at work, which provides the full details on what a standard hour reduction process, please download this template. Please click on the link below to gain access to it. 2020 Croner is a trading name of Croner Group Limited registered in England & Wales No. Effective communication is also vital, as in so many other business and workplace situations. Procedure for How to Revise TDS Return on TRACES, How to Download Emsigner for GST | Digital Signature App. Please be aware that we use various Cookie technology across our website. Many businesses run on overtime. 3. In accordance with [section/Article; Policy/Contract], this is the notice by the [Company name] that, [effective start date] your salary will be reduced from old salary to new salary. The Salary Reduction Letter Samples are attached below. But youre under no legal obligation to agree to the request. You have the right to respond to this notice of intent to take corrective decrease in salary within [Specified Date]. If the employee does not wish to go part-time then they need to be paid redundancy payments. However, itll send your employee a positive message of support if you dodepending on their circumstances. TDS on Commission or Brokerage | Section 194H in Income Tax Act, Download Payment Voucher Format | Cash | Bank | Advance, How to EPF Withdrawal Online After Leaving Your Job? This is UK law from 6th April 2020. If employment is not protected by an employment contract, your employer can reduce salary at any time and need to inform in the Salary Reduction Letter to their Employees. So, you must update them about any changes you plan. If you find yourself in the position that you need to ask staff to reduce their originally contracted hours, this template, written and approved by Employment Law experts and is fully customisable to your businesses situation. As an employer you cannot simply amend the contract without your employees consent to do so is to risk a breach of contract claim. This is particularly important during the coronavirus outbreak, where there may be a serious reduction in the amount of work you have. As businesses continue to face uncertain economic times, some are reducing employee hours in an effort to keep all their staff on while also addressing straightened business circumstances. If the employee agrees to the changes, the revised arrangement should be properly documented and signed by both employer and employee. However, employers do need to ensure that proper processes are followed and that changes are agreed to and documented. Indeed, it is common for enterprise agreements to specify the number of working hours per week, and sometimes the particular roster arrangements under which hours will be worked. This is a type of employer-sponsored retirement savings plan. Although it depends on the type of contract they have, you can make these changes temporarily or permanently. When staff members understand the context in which their hours and therefore income are reduced, they are more likely to pull together and work with you to improve the businesss situation. Section four of the Employment Rights Act 1996 states: If, after the material date, there is a change in any of the matters particulars of which are required by sections 1 to 3 to be included or referred to in a statement under section 1, the employer shall give to [the worker] a written statement containing particulars of the change.. And, finally, once theres an agreement you have to send out a reducing hours of work of employees letter explaining this to them. Accept the part-time role and stay on with the company. Croner Group Limited is authorised and regulated by the Financial Conduct Authority for the sale of non-investment insurance contracts. From time to time, your business may not have a set amount of work for your employees. Decide whether you can, contractually, do so. 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