Legacy Employers employers can use the stand down provisions to reduce employee’s hours provided that the direction doesn’t result in an employee working less than 2 hours in a given day or is not less than 60% of the employees ordinary hours as at 1 March 2020. Request letter for reduce of duty hours. Depending on how much of a reduction … The best way to approach it depends on the reason you're cutting back the hours. If your employees can afford the cut in take-home pay that results from working fewer hours, this strategy may offer the least long-term consequences to your business. Reducing Hours As Part Of JobKeeper. Reduction in hours or pay A reduction in an employee’s hours or pay can be a good option for non-exempt employees. If you’re thinking about a reduction in pay, you may want to consider a top-down approach by reducing the incomes of company leadership and managers first, then working your way down the corporate ladder as needed. The employment law for reducing hours. Each employee in the Work-Sharing unit must experience a reduction of their normal work hours. reducing the amount of sick pay you can get on top of your statutory entitlement; Changing your hours of work. However, you do need the consent of your employees—a reduced hours announcement letter is a step towards getting that. Reader’s Question . Employees with flexible schedules are more productive during the hours they do work and use their time more effectively—reducing the chance of overtime or not getting their work done as scheduled. If an employee’s pay is reduced illegally, you can face up to $12,000 in fines. Reducing an employee’s pay can be a risky move. Among other things, a reduction in hours can affect wage and hour law compliance, eligibility for unemployment and benefits, loan forgiveness under the Paycheck Protection Program (PPP), and employee morale. Last Name]: I regret to inform you that, due to [reason: e.g., lack of funds, lack of work, reorganization] in the [agency/department name], it is necessary to implement a reduction‐in‐force in the form of reduced work hours. If employees do not appear willing upon first mention of the change to, in this instance, their working hours, then you should enter a period of consultation with them. The biggest concerns about reducing work hours are limited career growth, reduced income and the potential for prejudice as a result. DOWNLOADABLE, ONE-TIME COST, NO SUBSCRIPTION FEES. My employees work varied hours and if I was to reduce the hours each worked would I have to do it as a percentage of their hours worked or could I reduce all employees the same amount of hours? Use the Employee Salary Reduction Letter to notify an employee of a reduction in their salary, the reasons why, and the effective date. Laying off workers is one option. 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