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Why firms are 'requesting' staff take pay cuts

Michael Pelly
Michael PellyLegal editor

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Employers that move to cut hours and pay during the COVID-19 crisis are walking a legal tightrope because of concerns about legal action by disgruntled staff seeking to enforce contracts.

Leading employment lawyers say bosses need to obtain the agreement of staff if they want to reduce labour costs in the face of shrinking revenue.

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Michael Pelly is the legal editor, based in our Sydney newsroom. He has been a senior adviser to federal and state attorneys-general and written two books, one a biography of former High Court Chief Justice Murray Gleeson. Email Michael at michael.pelly@afr.com

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    Original URL: https://www.afr.com/companies/professional-services/why-firms-are-requesting-staff-take-pay-cuts-20200419-p54l3z