While it’s relatively easy for employers in Ontario to increase a worker’s pay, the same can’t be said for reducing an individual’s wages.
Over the years, many of our clients have told us that they had no idea negative changes to their job, such as a pay cut, were illegal.
READ MORE: The ‘big 5’ workplace rights most often overlooked by employees
The reality is that non-unionized workers in the province can refuse major modifications to the terms of their employment.
When significant adjustments are made to your job without your consent, it’s very likely that you can treat it as a constructive dismissal. The law allows you to resign and pursue full severance, which can be as much as 24 months’ pay.
However, you shouldn’t quit your job until an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.
If your employer has cut your pay in Ontario, here are three things you need to do.
1. Remain calm and don’t do anything drastic
While a reduction to your salary or commission might make you so angry that you want to quit your job on the spot, don’t do anything drastic before seeking legal counsel.
If you resign without consulting an employment lawyer, you could unintentionally give up your right to a severance package.
In addition to severance, you won’t be able to access employment insurance benefits – further complicating your ability to support yourself financially as you line up a new job.
READ MORE: 5 things employees should never do before talking to an employment lawyer
Remaining calm and not reacting in the heat of the moment is key. Losing your temper once you learn of the pay cut or doing something to negatively affect the company can also put your legal right to claim compensation at risk.
After you have been notified of the reduction, continue to be professional and contact our firm immediately. Depending on the size of the cut, we can inform you of your legal options.
If your pay was slashed by less than 15 per cent, it’s very likely that you have a stronger legal claim for a breach of your employment contract rather than constructive dismissal.
In this situation, you may be able to recover the wages lost during the period of time that the reduction was in effect.
2. Object to the pay cut in writing
As soon as you are informed that your salary or commission is being cut, clearly state in a letter, email or text message to your boss that you don’t accept the change.
Immediately rejecting the reduction in writing prevents the company from being able to argue that you did agree to the modification.
If you wait too long to object to the pay cut, or continue working following the change, your employer could argue that you have accepted the new terms of employment.
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One of the firm’s clients, a software engineer working in Ontario, was told by his company that his salary was being reduced by 20 per cent.
The employee immediately emailed his boss and clearly stated that he didn’t accept the cut to his pay. Despite his objection, his employer proceeded with the change.
Since a significant adjustment was made to his job without his consent, Samfiru Tumarkin LLP was able to help him obtain full severance pay through a constructive dismissal claim.
3. Contact us
When negative changes are made to the terms of an individual’s employment, it can have a profound impact on their emotional and financial health.
If you refused major modifications to your job, and your company proceeded with them anyway, contact an experienced employment lawyer at Samfiru Tumarkin LLP.
READ MORE: 5 of the most common work situations where getting an employment lawyer can help
Our team in Ontario can review your situation, enforce your rights and ensure that you receive the compensation you are legally entitled to.
Boss made major changes to your job without your consent? Not sure if you’ve been constructively dismissed?
Contact the firm or call 1-855-821-5900 to secure assistance from an employment lawyer in Ontario, Alberta or British Columbia. Get the advice you need — and the compensation you deserve.
Lior Samfiru and Stephen LeMesurier are employment lawyers at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in employment law and long-term disability claims. The firm provides free advice through Canada’s only Employment Law Show on TV and radio.