Reducing an employee's salary
By Ron Guest | February 19, 2012
Matthew asked:
Can an employer reduce an employee's contracted salary for reasons unrelated to employee's conduct?
Ron Guest answered:
Yes, the employer can reduce your salary, if the employee is not a union member. However, employers are advised to give the employee notice, similar to the amounts in the Employment Standards Act (if regulated that way) which is a function of years of service. In reality, many employers don't know about this, and hence don't do it.
If however, the pay cut was material to the point of you having to quit your job to look for another job at around the same pay level, you could sue the employer for Constructive Dismissal, which means they altered the agreed terms and conditions of your employment to the extent that it required you to quit and seek other employment. Essentially what you sue for here is the same as what you would be entitled to if they had terminated your employment.