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WA Employment Contract - Can Employer Downgrade Position?

Discussion in 'Employment Law Forum' started by haydn, 25 February 2015.

  1. haydn

    haydn Member

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    I signed an employment contract as leading hand 18 months ago. The company wants to downgrade position and remove the leading hand allowance. Under employment law, can the company make me sign a new employment contract?
     
  2. Ivy

    Ivy Well-Known Member

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    Hi Hadyn,

    Does your contract have a provision that allows them to review your pay (for example each 12 months)? Also, why does the company want to reduce your pay?

    Are you working under an Award? Because the company cannot take away any rights that are given to you by the Award.

    Is the company offering you a new position with new tasks that comes with a lower rate of pay?

    If you are a permanent employee, then the company has limited rights to change your terms of employment without your approval. They could offer a redundancy for example, but they may not for example, be able to tell you that you are fired if you don't sign the new contract.

    Some more information about your situation would be useful. You should also contact Fair Work Australia to discuss your situation: Welcome to the Fair Work Ombudsman website
     
  3. haydn

    haydn Member

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    thanks Ivy,

    No the term is - project duration.( life of company on site ). The company is running low on work atm. we have all been cut from 8 on and 6 off to 7 and 7, and in our contract it is worded that the roster can change, but it has to stay over a certain amount of hours.

    the position is a demotion - tradesman back on tools
     
  4. Ivy

    Ivy Well-Known Member

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    Hi Hadyn,

    Has the project ended and therefore is your contract now coming to an end? If so, then your company may be able to offer you a lower rate of pay (as long as it is still the minimum rate under the applicable Award/ Enterprise Agreement) under a wholly new contract. Of course though, you aren't under an obligation to accept.

    If the project is still running and therefore your contract hasn't ended, then as I said earlier, the company has limited rights to change the terms of your agreement. As I said before, you should definitely contact Fair Work Australia if this is the situation.
     
  5. haydn

    haydn Member

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    cheers again.

    work is a little light on, the contract is not over, far from it.
    fair work actually pointed me in the direction of law!

    Haydn
     

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