News
July 2020
Pay Cuts and the “No work, No pay” Principle
There have been numerous articles concerning the legality of pay cuts by employers during and since lockdown, many of which provide misleading commentary.
One such article advised that “employment law had not been suspended and that any employer wanting to reduce an employee’s pay would need to obtain their consent”. That is not the full story. Another was dismissive of the “no work, no pay” principle and supported the Employment Relations Authority’s finding in one case that the employees were “ready, willing and able” to work during lockdown and therefore should have received their full pay for the period in question.
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