Letter Of Agreement To Deduct Salary

I refer to our [insertion date] meeting on whether you agree to accept a reduction of [amount] per [anjahr/month/hour] to a new [insert] rate per [annum/month/hour]. It may seem strange for an employee to agree, but companies often negotiate with a wage deduction on job security. For example, many companies during the global pandemic as we know it will implement various measures, such as flexible working hours, reduced working hours and lower payments, to preserve as many jobs as possible. As an employer, the first step in adjusting an employee`s salary is to review the employee`s contract. The contract describes the employee`s salary, all benefits and the frequency of the pay slip. Due to the global coronavirus pandemic, many companies have been forced to temporarily reduce employee salaries to avoid mass layoffs. A pay cut letter is a document that exceeds the conditions for which an employee reduces his or her salary. The model below can be used to create a personalized letter for your business. This is a message from the name of the company that your salary, which expires, will be reduced from the old salary to the new salary.

I agree with a [temporary/permanent] reduction in my salary from [inserting the amount] per [anjahr/month/hour] to a new rate of [insert] by [anjahr/month/hour] as proposed in the letter above. Yes, a reduction in salary is legal, provided the worker accepts the reduction and the adjusted salary is above the minimum wage. An “employee consent to the wage deduction” form provides that the employee confirms and confirms that the sums due to the company can be deducted from his salary before the employer`s payment of the salary. Summary If you run a business and employ staff, employee consent can be used to deduct the pay form so that employees validate and accept the amounts due to the company. Zb. for the repayment of a staff loan or the acquisition of corporate products. A wage deduction is a specified amount deducted from an employee`s monthly salary. Some deductions are mandatory, such as social security and federal income tax, while others are voluntary, such as pension and health insurance premiums. If you are willing to participate in the salary reduction program, please fill out your information below and send this form to [insert the name] by [insert a date]. If you have any further questions about this, please contact [Enter the name and contact information.] If we do not receive enough employee shareholding in the wage reduction programme, we have no choice but to consider setting up a redundancy programme that could lead to temporary redundancies.