Harris Voices Outrage in Interview with Howard Stern

[ivowatson]

Every May, starting low season, the company I work for and lots of other companies in the tourist branch

cut staff salaries by 20, 30 even up to 50%.

The results are that many quit these jobs and look for something else or go back to their family province

for a few months.

My question is: is this lawfully correct? Can they do this without the agreement of the employee?

Or is it only Thai controlled companies which can get away with that? Staff not wanting to report this

to the authorities because afraid of their employers?

To be complete; usually when there is a 30% salary cut, staff have to work only 70% of the time.

And the cuts are for ALL the staff, not only for some.

Someone?

[Pib]

I would think it's perfectly legal in a private sector job unless you have a personal or union contract for a set wage during year X of the contract, notification/negotiations requirements for a change in work conditions/hours/wages/benefits/etc. Since you didn't mention anything about a contract, I'm assuming there is not one.

Unfortunately, there have been lots of wage reductions across the world in the recent/ongoing financial downturn. Even public/govt sector jobs have seen wage cuts in several countries, states, counties, cities., after the governing authority for that area passed a new law/ordinance or implemented a part of one currently on the books allowing the reduction in wages to reduce a deficit, offset decreased tax intake, etc.

[ivowatson]

Sorry, I forgot about the contract. Of course, there are contracts involved. I'm not sure how one can get a job

with social security, work permit etc. without a contract.

But, in my experience, there was only a contract for the first year of employment. I assumed contracts

get renewed without actually doing or signing anything, unless they are terminated.

[Pib]

I didn't know a person and employer needed to signed a contract that guaranteed wages/hours/etc., when social security and WP are involved. I know employees sign a variety of documents relating to company work rules, tax withholding, sometimes work termination provisions, etc., but I didn't know there was always a contract involved. Guess you need to go read whatever contracts apply to your job if you can get ahold of them. Do you remember signing a contract? Did you get a copy after signing?

[Soutpeel]

I didn't know a person and employer needed to signed a contract that guaranteed wages/hours/etc., when social security and WP are involved. I know employees sign a variety of documents relating to company work rules, tax withholding, sometimes work termination provisions, etc., but I didn't know there was always a contract involved. Guess you need to go read whatever contracts apply to your job if you can get ahold of them. Do you remember signing a contract? Did you get a copy after signing?

Not strictly true, I have been with a MNC for nearly 10 years here and never seen a contract, and was never provided for my WP application etc

....so saying its mandatory for a contract to get a WP IMHO is not strictly true, if there is no contract, the standard labour laws apply, they do ,even if there is a contract in place, and if any of the terms of the contract are in contravention of the Thai labour laws, the Thai labour law takes presedence, Ie that condition of contract is invalid and not enforceable

To answer the OP question, in the private sector, yes wages can be cut, but it depends the way it is done

Edited January 12, 2011 by Soutpeel

[ivowatson]

To answer the OP question, in the private sector, yes wages can be cut, but it depends the way it is done

Thank you. That's exactly what I'd like to know. Is the way I described, the correct way?

[ivowatson]

To summarize and as an example: an employee signs a contract with his employer and the contract states

there will be employment from Jan. 1st 2011 until Dec. 31st 2011 and the salary is 50.000/month.

Can the employer decide by himself - without explicit agreement of the employee- that from e.g. May 1st 2011 the salary will be 25.000/month

and the employee needs to work only 24 hrs a week instead of the usual 48 hrs?

[zaphodbeeblebrox]

To summarize and as an example: an employee signs a contract with his employer and the contract states

there will be employment from Jan. 1st 2011 until Dec. 31st 2011 and the salary is 50.000/month.

Can the employer decide by himself - without explicit agreement of the employee- that from e.g. May 1st 2011 the salary will be 25.000/month

and the employee needs to work only 24 hrs a week instead of the usual 48 hrs?

There would have to either be a new contract, or a modification of the old contract made pursuant to the modification clause of the existing employment contract. Bottom line is this is a material change of the existing contract terms which requires mutual assent of the parties to the contract. I have the same issue with one of my employees who doesn't justify the salary she is earning. I'm offering her a new contract or termination. I have also done reduced schedules with pay reduced in accordance with hours worked (but no rate change) and it requires a new contract, because the existing contract specified the hours of work.

[singa-traz]

To summarize and as an example: an employee signs a contract with his employer and the contract states

there will be employment from Jan. 1st 2011 until Dec. 31st 2011 and the salary is 50.000/month.

Can the employer decide by himself - without explicit agreement of the employee- that from e.g. May 1st 2011 the salary will be 25.000/month

and the employee needs to work only 24 hrs a week instead of the usual 48 hrs?

Short answer: NO.

The employer will need to get the employee to sign an amendment to the new contract.

Visit the Labour Department, they will be really usefull for this.

[ivowatson]

To summarize and as an example: an employee signs a contract with his employer and the contract states

there will be employment from Jan. 1st 2011 until Dec. 31st 2011 and the salary is 50.000/month.

Can the employer decide by himself - without explicit agreement of the employee- that from e.g. May 1st 2011 the salary will be 25.000/month

and the employee needs to work only 24 hrs a week instead of the usual 48 hrs?

There would have to either be a new contract, or a modification of the old contract made pursuant to the modification clause of the existing employment contract. Bottom line is this is a material change of the existing contract terms which requires mutual assent of the parties to the contract. I have the same issue with one of my employees who doesn't justify the salary she is earning. I'm offering her a new contract or termination. I have also done reduced schedules with pay reduced in accordance with hours worked (but no rate change) and it requires a new contract, because the existing contract specified the hours of work.

Thank you for sharing.

Conclusion (if I get this right), if a contract doesn't specify the hours of work, it would be possible to let an employee work half the time for half the salary without the need for a new contract.

It looks like a cheaper way for the employer to get rid of some not-so-wanted employees because termination would mean a pay out of several months salary, depending on the length of work.