Labour Law

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Unjust Decrease in Salary

Question: I just want to know. My husband’s company decided to decrease everyone’s salary with R6000 because of the bad economy. What does the law say about that? Is it legal?

Answer: In general salary decreases cannot be done unilaterally and without staff consent. The law requires that full consultation is done with regards to any changes in the terms and conditions of employment. Although it is common knowledge that many Company’s are suffering there are still procedures to be followed. If wanted, your husband, may refer a matter to the CCMA with regards to unilateral changes in the terms and conditions of employment. This is a very strong referral as, if your husband can get support from other staff, this referral becomes a strike referral and the staff may then legally, if approved by the CCMA, have the power of a pending strike which would be legally protected, meaning no-one linked to the referral would be able to be dismissed in any way or form.

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