Need some clarification - employment

|tera|

|tera|

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Hi guys.

My employer has been going through financial difficulties due to less work coming into the business.

I have been paid half or less of half of my salary for the past 3 months.

They came back to us and told us because they can't afford the full salaries of the employees our working hours should also be made half.

So now I'm working half of the day for half of the pay.

Is this the norm with struggling businesses and is this process legal?

Of course it makes a huge dent in my lifestyle and living environment . I can only pay the basics currently.

If you can offer any input I would appreciate it. I know I can just look for other work, but again I would need finances to relocate etc.

Thanks.
 
You have a choice, accept or move.

Unfortunately I think move is not always an option.

So now it's take this or no job at all.
 
It's not unusual. But they must consult. I don't mean consult just to inform you of changes. There must be meaningful dialogue in an attempt to arrive at some agreement. They've unilaterally changed your working conditions - strictly speaking, that's not legal.
 
What about if work and money are both short but money is short because boss bought himself a R1m car last year when money was good?
 
maumau said:
What about if work and money are both short but money is short because boss bought himself a R1m car last year when money was good?
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As long as he did that out of his own money, there is no problem.
 
xeslaro said:
It's not unusual. But they must consult. I don't mean consult just to inform you of changes. There must be meaningful dialogue in an attempt to arrive at some agreement. They've unilaterally changed your working conditions - strictly speaking, that's not legal.
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Does it not boil down to the same thing at the end of the day? if the employer has taken the decision there is no amount of meaningful discussion that is going to change anything, in big companies with organised labour all it does is delay the inevitable.
 
thechamp said:
Does it not boil down to the same thing at the end of the day? if the employer has taken the decision there is no amount of meaningful discussion that is going to change anything, in big companies with organised labour all it does is delay the inevitable.
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In spite of the outcome being the same, the company is still wrong. If the OP continues to work for half the pay and then decides he can't manage and resigns. He won't qualify to claim UIF.

Conversely, if they consult, employee doesn't agree. They must retrench, pay severance, he then qualifies for UIF.

Therefore, there's more at risk, financially, should the OP just shut up and allow unilateral changes just because it's inevitable.
 
If you are only working half the day, use the other half to go for interviews and look for other work. Things aren't magically going to come right and the next step is probably for the company to close its doors.
 
Well legal or not (not sure if it is or is not), what can they do if they can't afford to pay salaries. Although I would think it is fair for the business to offer retrenchment packages. I assume it is a small office and if they retrench their won't be anyone to do the work? My wife's office (small office) had to retrench half their staff and those who are still employed have been overloaded with work. No increases. Some months salaries comes late with prior notice.
 
xeslaro said:
In spite of the outcome being the same, the company is still wrong. If the OP continues to work for half the pay and then decides he can't manage and resigns. He won't qualify to claim UIF.

Conversely, if they consult, employee doesn't agree. They must retrench, pay severance, he then qualifies for UIF.

Therefore, there's more at risk, financially, should the OP just shut up and allow unilateral changes just because it's inevitable.
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But maybe the company cannot even afford this? There is no use in suing an empty wallet.
 
Splinter said:
But maybe the company cannot even afford this? There is no use in suing an empty wallet.
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Technically, this would mean the company is insolvent. The employee does enjoy a preferential creditor's claim over the estate for outstanding salary, leave pay and severances. In reality, that will be a very very long wait for the employee, and any payment would still be contingent on whether secured debts have exhausted the estate.
 
At least you still have a job and you have half a day to go for interviews at other places :)

I would suggest you look for another job ASAP and use your "free time" for interviews. Rather get yourself out of it before they are left with retrenching or closing down completely.
 
xeslaro said:
Technically, this would mean the company is insolvent. The employee does enjoy a preferential creditor's claim over the estate for outstanding salary, leave pay and severances. In reality, that will be a very very long wait for the employee, and any payment would still be contingent on whether secured debts have exhausted the estate.
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Think SARS comes first.
 
Method said:
At least you still have a job and you have half a day to go for interviews at other places :)

I would suggest you look for another job ASAP and use your "free time" for interviews. Rather get yourself out of it before they are left with retrenching or closing down completely.
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This and if you not careful you will find new employers & hr policy triggering a check saying that your salary slip says your salary is x so why do u want z*x.

So ideally make sure work hours is reduced at least on paper in accordance with full time salary.
 
Good morning.

Thanks for all the responses. I'll keep looking at my options to choose the best route to take.

Enjoy your weekend :)
 
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