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Reduced Wages For Work From Home Employees

Laura Bowyer

Updated: 4 hours ago

Post 5 years ago, it was a slow trend towards remote working, since the pandemic, there has been an instant shift to remote working for many UK workers and proved to be popular for some businesses and workers, with the result that many employers across the UK have reconsidered their approach to and where their employees work. Google, Twitter and Facebook looked to reduce the pay of the workers who chose to work from home permanently. Even in England, an anonymous senior Cabinet minister was reported to have said last year that civil servants who refuse to return to office working should have their wages reduced, as it isn't fair that those who choose to work from home should receive the same salary as those who commute.


So, can an employer reduce the wages for those that work from home?


This all depends on the provisions in the employee's contract of employment or if there is a relevent trade union agreement, if there is an enhanced rate that is specifically tied to working in a particular area or office i.e. London weighting, they may be able to withdraw this when an employee is no longer working in that area. The other area to look at of course, is the implied variation i.e. if they have been working from home for the last 2 years and paid the same salary as working in the office, would it then be perceived as being unreasonable to reduce their salary? I am sure a business has consulted with their staff and sought agreement of the change, otherwise it's a breach of contract with a loss of wages and constructive dismissal, potentially with multiple employees bringing the same claim. Whilst there's the legal term it's also about the detriment to the workforce culture and could affect staff turnover. Not only that, it would also create a 2 tier/split workforce of them and us, meaning that home working staff members may feel less valued than those working in the office, which will negatively affect staff morale and culture. Also, financially forcing staff to return to office working to avoid having their salaries cut, may feel like they are being bullied by the firm which creates a level of resentment and in turn, affecting staff turnover, again. Is there not some middle ground with a hybrid model, a mixture of home and office working. That way the firm can reduce their overheads and size of commercial premises and mental wellbeing of hybrid for their loyal and productive staff.


Our Top Tips for Employers

  1. Talk to your teams and see what they want

  2. Consider whether the needs of the business is the reason for a legitimate change

  3. Discuss the objections, better to do this now than to cost you financially later

  4. Have a Hybrid Policy in the Staff Handbook


Disclaimer: Our blog content is for marketing or general information purposes only and doesn't constitute legal advice. Whilst we aim to provide accurate and up to date information, it should not be relied upon as a substitute for advice tailored to your specific circumstances. Reading this blog doesn't establish a client relationship with us. For formal advice please contact us directly: info@affablepartner.co.uk

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