Can my employer lower your wages? Your employer can only cut your pay or wages with your consent! If substantial changes are made to your job without your consent, such as reducing your wages by 15-20% or more, you can treat the move as a constructive dismissal.
In this situation, the law allows you to resign and pursue full severance, which can be as much as 24 months’ pay.
Do not quit your job if your employer attempts to reduce your wages before speaking with us via our free consultation form below because you may be able to get full severance.
As soon as the company tells you that your wages are being slashed, make sure you:
- Request a reasonable amount of time to consider the change before accepting any changes; and
- Ask for the terms of the pay cut in writing.
Here is what you do next:
Clearly state in a letter or email to your employer that you don’t approve of the change to your salary or your bonus.
If you refuse the pay cut in writing, and your boss goes ahead with it anyway, he is essentially unilaterally trying to attempt to change your contract. Contact us right away.
My employer says I have to sign a new employment contract, what should I do?
If the employment contract you initially signed doesn’t give your employer the ability to adjust your pay, they might ask you to accept a new agreement that gives the company permission to make changes.
In the event that you are provided with a new employment contract, have it reviewed by us before signing anything. You don’t have to accept it. Don’t give up your rights.
Major modifications to employment, such as a relocation, demotion, or shorter shifts, are illegal in Ontario.
Can my employer fire me for refusing a salary cut?
Your employer can fire you for refusing a pay cut. But, this would be a termination without cause.
Non-unionized employees in Ontario can be let go for any reason, as long as you are:
- Provided full severance pay (can be up to 24 months); and
- The reasons for your dismissal is not discriminatory.
Lost your job? Fill out our free consultation form.
Our job is to fight for you. We don’t get paid if you don’t get paid. Contact us today.
