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The company can take a pay cut, but the process must be done legally.
The employer shall pay wages in accordance with the provisions of the labor contract with the employee, and shall not reduce wages without authorization. If it is really necessary to reduce wages due to poor performance, it is necessary to negotiate with the employee and reach an agreement before re-entering into an employment contract.
In order, pay cuts usually start with senior executives. If the company is unable to make a profit, the supervisor himself must take a salary cut, because the senior manager is responsible for the company's operation.
In addition, the Labor Contract Law also clarifies four situations in which an employer may legally deduct wages:
First, if the employee fails to complete the production task due to personal subjective reasons, which is not caused by physical problems, the unit can deduct his salary. After deduction, the salary cannot be lower than the minimum wage standard of the city;
Second, when an employee violates labor discipline and causes losses to the unit, the unit deducts wages accordingly, and the monthly deduction ratio must be less than 20% of the employee's monthly wages;
Third, if the employee takes personal leave, it will be calculated according to the salary of one day deducted for one day of absence;
Fourth, if an employee takes sick leave, he or she will be paid according to the sick leave salary, and his performance or productive rewards may be deducted.
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It depends on the reason for the company. It is not possible to generalize. Enterprises have the autonomy of internal distribution and have the right to decide how much wages are not allocated, see the provisions of Article 47 of the Labor Law, but this provision is limited, and it must be that there are changes and difficulties in the production and operation of the enterprise.
Enterprises can only go through legal procedures to unilaterally reduce wages, otherwise one is illegal, the other is a breach of contract, and it is easy to bear the liability for liquidated damages.
The company's unilateral salary reduction needs to be discussed and approved by the staff meeting or all employees. Article 51 of the Labor Contract Law stipulates that: "When an employer formulates, amends, or decides on rules and regulations or major matters directly related to the vital interests of employees, such as labor remuneration, working hours, rest and vacation, labor safety and health, insurance and benefits, employee training, labor discipline, and labor quota management, it shall discuss with the workers' congress or all employees, put forward plans and opinions, and negotiate with the trade union or employee representatives on an equal footing.
It is illegal for the company to unilaterally reduce wages without discussion at the workers' meeting or all employees.
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1. Is it legal for the company to reduce salaries?
1. It is generally illegal for companies to reduce salaries. The company's salary reduction is an unauthorized modification of the labor contract and is an illegal act. If the company transfers jobs and reduces wages without reaching an agreement with the employee, the employee can apply for labor arbitration.
2. Legal basis: Article 17 of the Labor Law of the People's Republic of China.
The conclusion and modification of labor contracts shall follow the principles of equality, voluntariness and consensus, and shall not violate the provisions of laws and administrative regulations.
The employment contract shall be legally binding immediately and shall be binding upon the parties, and the parties shall perform their obligations under the employment contract.
Article 18. The following employment contracts are invalid:
1) Labor contracts that violate laws and administrative regulations;
2) Labor contracts concluded by means of fraud, threats or other means.
An invalid employment contract is not legally binding from the moment it is concluded. If it is confirmed that part of the labor contract is invalid, the remaining part shall remain valid if it does not affect the validity of the remaining part.
The invalidity of the labor contract shall be confirmed by the labor dispute arbitration commission or the people's court.
Second, under what conditions can the company reduce salaries?
1. Employees are allowed to be demoted and reduced in salary in accordance with the law in the case of serious violations of the regulations of the unit;
2. If the employee fails to meet the target for 3 consecutive months and complies with the company's salary management regulations, his salary can be downgraded.
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Legal analysis: During the term of the labor contract, if there are no special circumstances, it is illegal for the company to reduce wages and unilaterally change wages. Salary reduction status:
1. The labor contract signed by both parties may be changed by consensus through consultation, and the content of the change needs to be confirmed in writing, which of course includes the agreement on labor remuneration. 2. The law gives the employer the right to unilaterally change the salary, except for the change through negotiation between the two parties. Unilateral changes are mainly achieved through the following ways:
1. The employee is unilaterally adjusted by the employer because he is not qualified for the job. 2. The employee is given a penalty of demotion and salary reduction in accordance with the rules and regulations due to violation of the rules and regulations of the employer.
Legal basis: Labor Contract Law of the People's Republic of China
Article 29 The employer and the worker shall fully perform their respective obligations in accordance with the provisions of the labor contract.
Article 35 The employer and the worker may change the content of the labor contract if they reach a consensus through consultation. Modification of the labor contract shall be in written form. The amended labor contract shall be held by the employer and the employee.
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It is not legal for a company to unilaterally reduce an employee's salary without reason.
The employee may resign from the company on the grounds that the company has deducted his salary and demand compensation from the company. Severance shall be paid to the worker according to the number of years of service in the employer and one month's salary for each full year. where it is more than six months but less than one year, it is calculated as one year; If it is less than six months, the worker shall be paid half a month's salary.
Extended information: Case Xiaobai, signed a labor contract with Company A on April 1, 2013, served as a sales manager, with a monthly salary of 10,000 yuan per month (before tax), and the contract period was from April 1, 2013 to March 31, 2015. On May 8, 2014, Company A issued a notice of demotion and salary reduction to Xiaobai, demoting Xiaobai to a salesman on the grounds that Xiaobai was not qualified for the position of sales manager and did not meet the requirements of Company A, and his salary was reduced to 2,000 yuan per month. Xiaobai did not agree with the salary reduction made by Company A, and actually worked in Company A until August 10, 2014.
Company A has not paid Xiaobai's labor remuneration since May 8, 2014. On August 12, 2014, Xiaobai sued the arbitrator to demand that Company A pay wages and economic compensation.
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It is not legal to reduce your salary without your personal confirmation, and you can apply for arbitration.
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Legal basis: Labor Contract Law of the People's Republic of China Article 51 When an employer formulates, amends or decides on rules and regulations or major matters directly related to the vital interests of employees, such as labor remuneration, working hours, rest and vacation, labor safety and health, insurance and welfare, employee training, labor discipline and labor quota management, it shall discuss with the workers' congress or all employees, put forward plans and opinions, and negotiate with the trade union or employee representatives on an equal footing.
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Companies can't just cut salaries. The employer shall clearly reduce the salary in accordance with the rules and regulations and the verification standard, and shall make a public announcement in advance to inform the employee that the part of the salary reduction in the current month shall not be higher than 20% of the employee's salary in the current month.
Article 16 of the Interim Provisions on Payment of Wages.
If the employee causes economic losses to the employer due to the employee's own reasons, the employer may require the employee to compensate for the economic losses in accordance with the provisions of the labor contract. Compensation for economic losses may be deducted from the employee's salary. However, the monthly deduction shall not exceed 20% of the employee's salary for that month.
If the remaining part of the salary after deduction is lower than the local minimum wage standard, it will be paid according to the minimum wage standard.
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Legal analysis: Salary reduction can be negotiated by both parties. The labor contract signed by both parties may be changed by consensus, and the content of the change shall be confirmed in writing.
In addition to the change negotiated by both parties, the law gives the employer the right to unilaterally change the salary, mainly through the following ways: 1. The employee is unilaterally adjusted by the employer because he is not qualified for the job. This article is based on the principle of "on the premise that the post adjustment is legal, and the post is changed and the salary is changed".
2. The worker violates the rules and regulations of the employer, and is punished with a reduction in salary in accordance with the rules and regulations. 3. Adopt a structural floating salary and adjust it within the agreed range.
Legal basis: Article 35 of the Law of the People's Republic of China on the Existence of Defects in Labor Contracts stipulates that the employer and the employee may change the content of the labor contract if they reach a consensus through consultation. Modification of the labor contract shall be in written form.
The amended labor contract shall be held by the employer and the employee.
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During the term of the employment contract, it is illegal for the company to reduce wages and unilaterally change wages. The Labor Contract Law stipulates that the employer and the employee may change the content of the employment contract if they reach a consensus through consultation. Modification of the labor contract shall be in written form.
The amended labor contract shall be held by the employer and the employee.
Can the company take a unilateral salary cut?
No. If the employer fails to pay the labor remuneration to the employee in full and in a timely manner in accordance with the provisions of the labor contract or the provisions of the state, the labor administrative department shall order the employee to pay the labor remuneration, overtime pay or economic compensation within a time limit; If the labor remuneration is lower than the local minimum wage standard, the difference shall be paid; If the employer fails to pay within the time limit, the employer shall be ordered to pay additional compensation to the employee at the rate of not less than 50% but not more than 100% of the amount payable.
Is it legal for companies to take unilateral pay cuts.
The unilateral change by the employer is a violation of the provisions of the Labor Contract Law, and the employee may apply to the labor dispute arbitration commission where the employer is located to request that the unilateral change by the employer be invalid.
The company can reduce wages under what conditions of suffering.
1. Employees who violate the company's discipline and violate the company's rules and regulations can be punished and reduced in salary in accordance with the system. 2. Due to the needs of the work, the employees will be adjusted to adjust their positions and reduce their salaries because of the different value of the positions. 3. Employees whose performance appraisal does not meet the standards in their monthly performance appraisal for 3 consecutive months and meet the conditions stipulated by the company's salary management will be downgraded in their salaries, resulting in a reduction in their salaries.
Can employees who have a salary cut by the company be dismissed at a loss?
Employees who do not accept a salary reduction cannot be dismissed. Unless the employee is at fault, or the employee can be dismissed without fault as stipulated in the Labor Contract Law, it is an illegal dismissal, and the employee shall be compensated at twice the standard of economic compensation.
Article 35 of the Labor Contract Law stipulates that the employer and the employee may change the content of the labor contract if they reach a consensus through consultation. Modification of the labor contract shall be in written form.
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