Corinne Aldridge, head of our Employment team, was featured in the Q&A section of the Financial Times on 21 April 2020. She discusses the considerations senior managers should make when taking a pay cut during the Coronavirus crisis.
In the article Corinne says that
The moral and business arguments for sharing the pain are clear, but individuals do need to weigh up how the financial and practical implications square with this."
The obvious question is whether you can afford a 10 per cent cut. From what I am seeing, reductions are typically between 20 per cent to 40 per cent of salary so your 10 per cent would not be unreasonable in the current context. Furthermore, if you refuse to take the pay cut, you may open yourself to accusations of not being a team player and also to the risk of redundancy anyway."
Click below to read the full article in the FT.
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I’ve been asked to take a pay cut, should I agree?
My employer has said that if we don’t cut salaries redundancies will be on the cards
About the author
Corinne is an immensely experienced and highly respected employment lawyer. She advises both employers and senior executives in relation to the full spectrum of employment-related issues. She particularly enjoys dealing with equal opportunities-related issues in the workplace and acting in relation to (often hard-fought) whistleblowing claims.