The first thing you want to do when you try this option is to consult your business advisor or a lawyer. There are great tips online on how to reduce salaries, but this advice does not take into account the rules and laws in your own country or place. After analyzing all cost reduction methods in the same way as above, you analyze the financial impact they will have. From there, you have to choose so many methods that are simultaneously necessary to achieve your financial goal. 3. Enter the dollar amount or percentage you want to take from your cheque. A dollar amount is a set amount for which you want to reduce your salary (per pay period or per year), and a percentage would be a percentage of your salary. Marginal note: For reasons of efficiency, it is important to analyze the number of initiatives you need to implement. If it is necessary to implement all of the following cost-cutting methods to achieve your goals, it may be easier to have a layoff event.
2. [UNPAID LEAVE/SABBATICAL: If employees wish to take longer unpaid leave, please direct your request to your supervisor. In some cases, we may grant up to [3 months] of leave.] NOTE: A sabbatical agreement is required. Employers may change a worker`s contractual working conditions only with the worker`s consent. This letter, which seeks approval of wage cuts as an alternative to dismissal, will be used to seek a wage reduction agreement as an alternative to a redundancy program. For example, it can be used by an employer facing a drop in activity due to the appearance of the coronavirus (COVID-19). If the employer makes adverse changes without the consent of a worker, the employer runs the risk of an infringement, an illegal deduction or an action for unjustified constructive dismissal. The document describes the employee`s current salary, the reduced salary and the reasons for the reduction. By using this document, the salary reduction is documented in writing in order to avoid any misunderstanding or dispute over the employee`s remuneration. Finally, you must inform your affected employees of the imminent reduction in their salary. Most organizations do this with a company-wide letter that can be delivered via email or in person. 4.
[SHORT-TIME WORKING: Staff employment contracts allow us, in certain circumstances, to reduce weekly working hours and reduce wages accordingly. We propose that the company reduce its standard full-time work week to [4 days] from [DATE] to at least [DATE]. In the case of part-time workers, we ask them to make a similar 20% reduction. We ask all employees to speak with [MANAGER] until [DATE] to determine and discuss their abbreviated way of working.] NOTE: A temporary change of conditions is required for each employee (myHRdept can provide this). For example, if your company needs to change its business strategy permanently, making the skills of several employees redundant, you probably won`t need to cut your salary to manage your costs more effectively. In this situation, it would be wise to proceed with a layoff or RIF, as it has a huge impact on your organization. 4. You can only choose a set amount of dollars if you reduce your salary by more than 6%. The COVID-19 Salary Reduction Letter is the notice or letter by which an employer informs its employees of a proposed salary reduction due to the coronavirus pandemic. .