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taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6466
Experience:  15 years experience of advising on employment law matters
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We have an employee who has been with the company years.

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We have an employee who has been with the company for 9 years. During that time their salary has increased in stages quite a bit as they have worked hard and done well.
So every time they took on more responsibility or some new endeavour their pay increased, often by large percentages.
However in the last 18 months the employee’s demeanour has changed and now their manner is almost anti-company and their work ethic has disappeared. They are just not pulling their weight
My question is….On the basis that when they were working hard and doing well the company rewarded them with pay rises. Is it reasonable to reduce their wages if they are no longer (consistently) doing well or frankly even trying?
Hello my name is***** am an employment lawyer and I am happy to help you today. Have you raised the issue of performance at all with the employee?
Customer: replied 2 years ago.
yes and received an aggressive rebuttal
Customer: replied 2 years ago.
hello ?
Ok the problem is that you cannot reduce an employees salary without either obtaining their agreement (unlikely) or without following a disciplinary procedure on the grounds of performance and offering a salary reduction as an alternative to dismissal. This would be a fairly lengthy process involving a performance review and setting reasonable targets. If you seek to reduce it without either of these things being in place then your employee could resign and claim constructive unfair dismissal and would be successful. They could also claim for the difference in pay as it would amount to a unilateral variation in terms and conditions.
If you would like further advice on the procedure to follow for a performance review please let me know. If I have answerd your question I would be grateful if you would take the time to rate my answer.Thank you and all the best.
Customer: replied 2 years ago.
and one last aspect.
the employees salary was agreed in a contract in April 2012
after then he received another payment in lieu when he returned his company car.
does this payment also become his standard salary too ?
What do you mean by payment in lieu as this would not normally be unless they had left.
Customer: replied 2 years ago.
the employee had a salary and a company car.
they handed the car back but insisted on a a monthly payment to compensate them for not having a company car
Yes it is if you have been paying it since 2012 through custom and practice that would be his salary.
Hello Martin is there anything further you would like to know about this?
taratill and 3 other Employment Law Specialists are ready to help you
Customer: replied 2 years ago.
ok, thanks. great answers.....just not the ones i was hoping for....!
Sorry it was not the answer you wanted. Thanks for taking the time to rate my answer.