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Pay cuts in Alberta: 4 things employees need to do

One thing non-unionized employees in Alberta never want to be told is that their salary or commission is being reduced.

In many cases, workers won’t challenge a pay cut because they believe their employer has the right to modify their wages. The reality is that employees in the province can refuse negative changes to their job.

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If you reject major adjustments to the terms of your employment, and your boss proceeds with them anyway, it’s very likely that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance, which can be as much as 24 months’ pay.

READ MORE: The ‘big 5’ workplace rights most often overlooked by employees

However, you shouldn’t resign until an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

Here are four things non-unionized employees in Alberta need to do if their company cuts their pay without their consent.

1. Remain calm and don’t quit your job

Being told that your salary or commission has been reduced can be an overwhelming experience. In the heat of the moment, many of our clients were so angry that they almost quit their job.

Breaking news from Canada and around the world sent to your email, as it happens.

However, it’s crucial that you don’t do anything drastic, such as resign, before seeking legal counsel.

Quitting your job without consulting an employment lawyer could result in you unintentionally forfeiting your right to a severance package.

In addition to severance, you won’t be able to access employment insurance benefits, which could make it harder to support yourself financially as you look for new work.

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READ MORE: 5 things employees should never do before talking to an employment lawyer

Losing your temper or doing something to negatively affect the company can also put your right to severance at risk. Remaining calm and respectful will ensure that you receive the compensation you deserve.

After speaking with your boss about the change to your salary or commission, continue to be professional and contact our firm.

An experienced employment lawyer at Samfiru Tumarkin LLP can inform you of your legal options based on the size of the reduction.

2. Get the details of the pay cut in writing

In Alberta, employers often tell non-unionized workers in person or over the phone that their salary or commission has been reduced.

READ MORE: 5 of the most common employer mistakes — and what employees can do about them

If you are informed of the pay cut verbally, ask your boss to provide you with the details of the modification in writing.

Make sure the company includes why your wages are being slashed, when the change takes effect and whether other aspects of your job will be affected.

3. Object to the pay cut in writing

Shortly after you have been notified of the pay cut, it’s very important that you reject the change in writing.

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Clearly state in a letter, email or text message to your employer that you don’t approve of the reduction.

READ MORE: Boss gave you an ultimatum? 4 key rights you have

If you wait too long to object to the pay cut, or continue working following the modification, the company could argue that you have accepted the new terms of employment.

Rejecting the change to your salary or commission in writing will also prevent your boss from being able to claim that you were fine with it.

4. Contact us

If negative changes have been made to your job without your consent, speak with an experienced employment lawyer at Samfiru Tumarkin LLP.

We have helped numerous non-unionized individuals across Alberta enforce their workplace rights and secure the compensation they deserve.

READ MORE: 5 of the most common work situations where getting an employment lawyer can help

One of the firm’s clients, a marketing assistant in Calgary, was told by his boss that the company decided to slash his salary by 18 per cent following a “strategic review.”

Immediately after the conversation, the worker clearly stated in an email to his employer that he didn’t approve of the reduction. Despite his objection, the company went ahead with the change.

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While he was extremely tempted to quit his job on the spot, he remained calm and contacted Samfiru Tumarkin LLP.

Since a major modification was made to the terms of his employment without his consent, our lawyers were able to help the marketing assistant obtain full severance pay through a constructive dismissal claim.


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 British Columbia, Alberta and Ontario. Get the advice you need — and the compensation you deserve.

Lior Samfiru and Karishma Patel 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.

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