Question: Since 2004, the company has not been meeting its obligations with SARS, PAYE, etc. due to poor financial controls, unaccountable payments and cash withdrawals from the company’s account. Also due to lack of new business growth, can the comany reduce senior staff salaries up to 50% using the issue of recession, company notmeeting a profit and stating staff are overpaid. What can I do?

Answer: This is becoming a common and unsavory practice. Although it is common knowledge that we are in an economic downturn and even the largest of companies are undergoing major retrenchments, no company may unilaterally reduce an employees salary without signed written consent. Equally there is a consultation process that should also be followed.

You have a right to refer this as a complaint to the Dept.of Labour as well as the CCMA as an unfair labour practice. Both are a free service.
It is not the employees fault that the company is practicing irregular and adverse actions and not meeting prescribed commitments. These are lawful & statutory payments.

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