Question :
Hi,If reducing staff wages to 80% (after a consultation period) do they still have to work their 40 hours (salary based) if the work is available?

Question submitted 07/04/20 @ 05:03pm
Industry: HR & Talent
  • Kia ora – the 27 March update from Grant Robertson states that
    “The wage subsidy does not change any other employment law obligations, meaning employees must be paid appropriately under their employment agreements for the hours they do if they work during the lockdown.”
    Hope this helps…

    Hey Darwin,

    Ihaka here, my thoughts are if you’ve gone through a consultation process with people to reduce their wages to 80% then I would assume they would still be expected to work their normal contracted hours.

    I would need more information though:
    Have they reduced staff wages to 80% for the duration of the lockdown only?
    What sort of agreement have they come to? I would assume the hours worked would be part of the negotiation/consultation process?
    Is there 40 hours’ worth of work available for everyone?

    Sorry to answer your questions with questions but a bit of context will help narrow the response!

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