To lower costs and avoid layoffs during difficult times, employers may consider reducing employees' regular work hours. During the COVID-19 pandemic, if both the employee and the employer are eligible for JobKeeper, the employer can ask employees to reduce their hours temporarily as part of a JobKeeper enabling direction. Reducing an employee’s pay can be a risky move. Hi, I work part time and have worked 3.30pm-7.30 pm for a long time now when I first started nearly 13 years ago I was 3pm till 7pm but there was a recession so I was put on the hours I work now as I was always working past 7 therefore was working overtime and I think that's why I … Reader’s Question . Document Length: 1 Page. It's better for your business if they stay for a while. Working full-time hours but over fewer days. Inflexible hours, especially combined with low wages, place demands on employees that leave them starved for time, both for themselves and for their families. I would be extremely grateful. reducing the amount of sick pay you can get on top of your statutory entitlement; Changing your hours of work. What Our Clients Say. Among other things, a reduction in hours can affect wage and hour law compliance, eligibility for unemployment and benefits, loan forgiveness under the Paycheck Protection Program (PPP), and employee morale. Employers Can Reduce Employee Salary with a Voluntary Pay Reduction There is a provision which allows exempt employees to voluntarily reduce their pay. The Texas Workforce Commission Shared Work Program is one example of a solution that allows an employer to reduce an employee’s hours, as opposed to laying off its employees, while permitting affected employees to collect a portion of unemployment benefits. Although consultation is still required, the employees cannot unreasonably refuse to reduce their hours. Depending on how much of a reduction … 1. No one likes to give bad news, especially to employees. Economic downturns or adverse circumstances can force business large and small to cut costs. Request letter for reduce of duty hours. Casual employee hours can be readily changed in response to your business needs however reducing the hours of a full-time employee requires the employee’s acceptance in writing. Like most employers worldwide facing economic difficulties, Texas employers are struggling with the issue of how to avoid massive layoffs. Construct a strategic plan for reducing employee salaries, beginning with employee communication. The U.S. Department of Labor enforces the Fair Labor Standards Act, which contains regulations on minimum wage, working hours, overtime pay and employee classification. Employees come and go. These messages are particularly difficult to write in a letter because it may seem that no matter how you state the facts, the recipients will be angry and upset. Under UK employment law, you can reduce an employee’s hours. The salary reduction must reflect long-term business needs rather than a short-term salary deduction. Respected Sir, When reducing hours, be sure to handle the situation carefully and equitably and comply with applicable federal, state, and local laws. Reading Time: 3 minutes. Reduction in hours or pay A reduction in an employee’s hours or pay can be a good option for non-exempt employees. Basic rules. Laying off workers is one option. Each employee in the Work-Sharing unit must experience a reduction of their normal work hours. An employee may work a maximum of 12-hours a day unless an exception occurs. However, you do need the consent of your employees—a reduced hours announcement letter is a step towards getting that. I understand that in this position we work until the job is done, but also that should allow some flexibility for the employee also. Reducing an employee's hours of work Reducing a full-time or part-time employee’s ordinary hours usually needs an employee’s agreement. Similarly, reducing hours for an exempt employee typically causes a loss of exemption. However, there are circumstances where it is permissible to do this. If state law requires a higher minimum salary for exempt employees, you cannot reduce an exempt employee’s salary below that minimum. Stop working long hours and get a life outside of work. Consequently, each employee must work a minimum average of 40% (2 days) of their normal weekly hours over the life of the Work-Sharing agreement. 5. Reducing Hours As Part Of JobKeeper. Exceptions. If your employees can afford the cut in take-home pay that results from working fewer hours, this strategy may offer the least long-term consequences to your business. Generally, reducing an employee’s wage is seen as unfair and unethical. Employees with flexible schedules are more productive during the hours they do work and use their time more effectively—reducing the chance of overtime or not getting their work done as scheduled. Reducing an employee's work hours is a delicate matter. Part time employees generally climb off the fast track. Nevertheless, you can reduce your work hours … Unless reducing hours is already a common practice in your workplace, it could be challenged on the basis of fairness, consistency with your policy, or discrimination. Last Name]: I regret to inform you that, due to [reason: e.g., lack of funds, lack of work, reorganization] in the [agency/department name], it is necessary to implement a reduction‐in‐force in the form of reduced work hours. More stress To lower costs and avoid layoffs during difficult times, employers may consider reducing employees' regular work hours. You may have to give up seniority, management of other people, project lead roles, etc. When business is down, it is often necessary to lay people off or reduce hours. This reduction may be between 10% and 60% over the duration of the agreement. Reducing your employees’ working hours is a simple cost-cutting strategy in terms of execution. DOWNLOADABLE, ONE-TIME COST, NO SUBSCRIPTION FEES. If an employee’s pay is reduced illegally, you can face up to $12,000 in fines. Employers should review relevant awards and enterprise agreements which may include rules about reducing hours of work, particularly for part-time or casual employees. The best way to approach it depends on the reason you're cutting back the hours. Bertie As you can imagine, it is extremely difficult to balance 6 hours of work per day and university at the same time. The biggest concerns about reducing work hours are limited career growth, reduced income and the potential for prejudice as a result. If an employer converts a salaried employee to hourly pay, the employer must pay at least the minimum wage for all hours worked and must pay overtime pay when the employee works more than 40 hours in a week. Can Non-Exempt Employee Work Hours Be Cut?. If you’re thinking about a reduction in pay, you may want to consider a top-down approach by reducing the incomes of company leadership and managers first, then working your way down the corporate ladder as needed. Due to my circumstances, I respectfully ask that you reduce my hours from 6 hours to 4 hours. Small businesses facing poor or uncertain financial circumstances may be forced to consider drastic employment decisions including layoffs and benefit reductions. Legacy Employers employers can use the stand down provisions to reduce employee’s hours provided that the direction doesn’t result in an employee working less than 2 hours in a given day or is not less than 60% of the employees ordinary hours as at 1 March 2020. I am an administrative employee and my department is undergoing some major changes, one of them is the hours that we will be open and the task of covering all of those hours with limited staffing. Flexitime The employee chooses when to start and end work (within agreed limits) but works certain ‘core hours’, for example 10am to 4pm every day. SAMPLE – Reduction‐in Force (Reduced Work Hours) State Agency [Date] [Name] [Address] Via [Hand Delivery OR Certified Mail No._____] Dear [Mr./Ms. Anne Dewier Margot Hills, Yellowknife, Canada. The employment law for reducing hours. Another is reducing work hours by furloughing non-exempt and hourly employees. If employees do not appear willing upon first mention of the change to, in this instance, their working hours, then you should enter a period of consultation with them. If the employee refuse to accept the restructured half day job, is he/she entitled to a full severance/retrenchment package. For employers, allowing employees to telecommute can save around $11,000 per employee each year . Should i reduce the employee’s work hours to half day due to restructuring is there any proportionate retrenchment/Severance payment required 2. A written record can help protect a business if any questions or legal issues arise regarding the reduction of hours. My employees work varied hours and if I was to reduce the hours each worked would I have to do it as a percentage of their hours worked or could I reduce all employees the same amount of hours? Use the Employee Salary Reduction Letter to notify an employee of a reduction in their salary, the reasons why, and the effective date. When reducing an exempt employee’s salary, you may also reduce the hours the employee is expected to work. An employee is entitled to one 30-minute paid or unpaid break after the first 5 hours of work for shifts that are between 5 and 10 hours long. We do not recommend reducing hours as a disciplinary measure, as it does not directly address the performance or behavioral issue that the employee is having. Extended work hours can also reduce the quality of your life by conflicting with quality time for family and time for other responsibilities and needs outside work. Simply put, strict hours … Although it depends on the type of contract they have, you can make these changes temporarily or permanently. Learn five ways to reduce employee turnover so your business can save money and be more efficient. Unfortunately this situation isn’t quite as straightforward as you might think. Free time to spend with family and close friends is not adequate with this work schedule. Give bad news, especially to employees is seen as unfair and unethical needs an employee ’ s pay be. For prejudice as a result your employees ’ working hours is a simple cost-cutting strategy terms., especially to employees hours is a provision which allows exempt employees to telecommute save. Top of your statutory entitlement ; Changing your hours of work entitled to full! 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