Ar­bi­trary cash cuts a dan­ger zone

The Weekend Australian - Travel - - Indulgence -

EM­PLOY­ERS should check em­ployee con­tracts and any un­der­tak­ings made at the time of re­cruit­ment be­fore ar­bi­trar­ily mak­ing changes to cut costs — es­pe­cially for se­nior ex­ec­u­tives with large bonus in­cen­tives.

This cau­tion was sounded by Joy­deep Hor, man­ag­ing part­ner of Harm­ers Work­place Lawyers, at a hu­man re­sources con­fer­ence in Syd­ney this week.

‘‘ The days where com­pa­nies slash or sig­nif­i­cantly ad­just bonuses and in­cen­tives with­out con­sul­ta­tion are num­bered’’, said Hor, say­ing that uni­lat­eral ac­tions could well be chal­lenged in courts by dis­grun­tled staff.

Prom­ises and rep­re­sen­ta­tions, for­mal and in­for­mal, could be ap­plied in le­gal chal­lenges in cir­cum­stances where em­ploy­ees be­lieve they had been mis­led by em­ploy­ers into ex­pect­ing cer­tain lev­els of bonuses and in­cen­tive pay­ments re­gard­less of eco­nomic con­di­tions, he warned.

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