keira-2007

The scenario is:

We moved to the States nearly 2 yrs ago. My husbands company transferred us on L1a/L2 Visas. My husbands contract is a European one, he keeps many of the perks as he had in the UK (amount of holiday etc) but we actually moved over here on a Permanent basis rather than a secondment. However, his contract does state that if after 4 years there is no more work for him to do, they will pay to repatriate us back into the UK.

So the company he works for is a very large company but like many others it is struggling in this economy. The company want to do enforced furloughs over the next few months. Indeed until the end of the year in fact. These furloughs involve 5 complete weeks of shut-down, done one week a month for the next 5 months. Obviously, while the company shuts for these weeks, no employees get paid. This means that all employees (including my hubs) face a pay reduction of 20%. Not an insignificant amount of money to lose.

I understand in the States that most employees contracts are "at-will" and no pay rates are secure and don't provide much protection for the employee. However, in my hubs case, whose contract does detail his annual salary, is it still legal for the company to reduce his pay by 20%? He is the only Expat over here in his section of the company, so he doesn't know whether HR are over-looking the fact that he has a European contract and that things are done differently on the other side of the water!

If anyone has any knowledge or expertise in this area, help/advice would be massively appreciated. This is a bit of a minefield to be honest. If it turns out that he has to accept the pay reduction, then fine, not happy but what can you do? But if legally, as an Expat over here, his rights are different then I'd love to know.

(Luckily, he sneakily got the US branch of the company to sponsor and pay for our Green Cards, which we now have in hand so if things got super hairy then at least we wouldn't get chucked out the country, but as far as the UK branch of the company are aware... and that is where Head Office and the Powers-that-be are... we are over here for 4 years and after that they will look at our situation and place us where they feel is best.

Sorry it's so long-winded, just wanted to get all the details in and try and make it all make sense... if you know what I mean.

Englishtart

Firstly, I have no idea of the legal part of your question...But, I do know that I have a few friends/family in the UK that have had 'shutdown' weeks enforced on them at work, because their company is going through a
financial crisis, I don't think it is ilegal to do that in the UK, although not really sure about the union involvement, hope someone on here can help you more hon

anotherlimey

Firstly, I doubt the legal aspects are that different if he was a USC/Greencard employee, they all get treated like s**t anyway.

Secondly, unless he's got a great relationship with the company, or is really indispensable, why get on the wrong side of the employer in these times?

lisag8070

hmm sorry I've got no idea if the european contract holds anything over here but try and post this question in the immigration forum...some of the peeps over there might know?..

or if you ask the moderator nicely maybe they'll move it over for you?

keira-2007

Hmmm. Interesting Englishtart... I wasn't aware this was happening in the UK too. So contracts stating what you are to be paid on an annual basis don't stand up in tough financial times? Crumbs. I never knew that. Oh well, that probably does answer my question then, doesn't it. Next 6 months we're gonna be living on the breadline! And we're the lucky ones. At least we have savings that we could dip into should the need arise. Those poor buggers whose every penny is spent the minute the paycheck comes in are really going to suffer now.

Lisa, I wasn't sure which board to post under to be honest. I thought the immigration board was more for those coming into the country and their VISA issues. I figured I'd post on here first and if the Mods want to move it, they can.

Thanks guys.

rebs

It might be worth doing a bit more digging into things. I think employment contracts are different in the UK and the US.

For example, I read recently about EDS reducing salaries across the board in the US, but were unable to do so in such a free and easy way in Europe due to the employment laws there.

As I understand it - any changes to terms and conditions have to be agreed with employees. I think that would also apply to shut down periods. Of course how that 'consultation' happens and what might be the alternatives if the change is not agreed to are all variables.

If I were in your shoes, I think I would try and do some research - what about HR in the UK? Or a UK based employment lawyer?

Socal Local

I don't know the answer to your question, but I'd agree it is worth a bit more research, especially if he is in a unique position which may well have been overlooked when the policy was being put in place. The UK company I work for recently introduced a 'use-it or loose-it' policy for vacation instead of the previous policy which allowed people to buy or sell up to a week of vacation. A few weeks later another email followed for our small office in CA saying that it didn't apply to us as it wasn't enforcable in California

Englishtart

Might be a State thing...I know a few people here that are always complaining about use or lose vacation time

Socal Local

Yes, it is. The policy applies to our other US office, but apparently they couldn't enfore it - at least the way it is currently written, in California and given that there are only a few of us, they just decided it was easier to make an exception.

emailrob

What about his UK contract? Most contracts in the UK already have such a clause saying that they may change working hours, terms and conditions etc. with reasonable notice and consultation. In the US generally such consultation is not required, unless there is a specific state law in place.

However, even saying that I would suggest your OH politely speaks to the HR person, mentioning you assume it was an oversight as such a change would affect people on a US contract only.

Are there people in the UK having this done also or just US?

My only word of caution is be wary of your OH not marginalising himself by being the only one this does not affect in the US office. People talk openly about these types of things over here.

Englishtart

It's happening in the UK too, my Sister works for Phillips in the UK, has done for almost 20 years, they have been closing down for one day a week for a couple of months, then last month they asked for voluntary redundancies, they didn't get enough people taking them, so my Sister got a letter on Tuesday, she is being 'made' redundant at the end of this month.

Redwing

Suggest you talk to a labor attorney or the state labor board.

snowbunny

Keira, is your husband the only employee with a "European contract" working in the US office of the company (I read that he's the only one in his section)?

I ask because if he is, and the others have had a forced pay cut, having his full pay reinstated would cause some serious resentment. If he is not, and there are others in the same position who might even be willing to join the fight, you'd be better off.

AdobePinon

+1. It would be a great way to put himself first in line for the chopping block. Be careful with this one.

Jerseygirl

I thought once you become a permanent resident most companies consider you a US employee and not on secondment from another country. You would therefore fall under the T & Cs of the US company.