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Template Letter Seeking Agreement for Salary Reduction as an Alternative to Redundancy

Letter Seeking Agreement to Salary Reduction as Alternative to Redundancy


Employers are only able to change an employee’s contractual terms and conditions of employment with the employee’s consent. This Letter Seeking Agreement to Salary Reduction as an Alternative to Redundancy is to be used to seek an agreement to a reduction in salary as an alternative to a programme of redundancies. For instance, it may be used by an employer facing a downturn in business on account of the coronavirus (COVID-19) outbreak. If the employer makes detrimental changes without an employee’s consent, the employer runs the risk of a breach of contract, unlawful deductions or unfair constructive dismissal claim.

The letter advises the employee of the amount of the proposed salary reduction and the effective date of the change. There is also a consent form for the employee expressly to consent to the salary reduction.

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