In times of crisis, few people will be surprised by the news that certain enterprises, companies and organizations are experiencing extreme financial problems. Often, to stay afloat, managers resort to such a very severe measure as a reduction in the salaries of their employees. In the future, depending on the circumstances, someone manages to determine these actions as a temporary measure, but according to research, a large number of employers make such decisions on an ongoing basis. The decrease in salary at the initiative of the employer is provided for by the labor legislation of the Russian Federation. But this measure is considered legal if all conditions prescribed by the legislator are met. They will be discussed in this article.
Normative base
Each executive in carrying out actions such as salary cuts should be guided by the regulatory framework, which is based on the relevant articles of the Labor Code of the Russian Federation, as well as a number of labor and collective agreements concluded either with an individual employee of the enterprise or with a whole team of employees.
Registration of labor relations is always carried out on the basis of state documents confirming the legality of actions.
Grounds for salary reduction
Of the main reasons often used by managers in relation to their subordinates to cut wages, the following are distinguished:
- decrease in the volume of work;
- restriction of direct duties of employees of the enterprise;
- shortened work week;
- demotion of an employee. This measure may have a time limit determined from six months to a year, or be unlimited. It should be borne in mind that the appointment of an employee to a lower position is illegal if he is unable to perform labor functions in connection with his health condition.
How can salaries be cut?
Meanwhile, a decrease in the official salary at the initiative of the employer cannot be simply formalized. Moreover, this is just one of the possible forms.
Management must act in accordance with specific legal provisions. Otherwise, it runs the risk of being sanctioned. The legislator enshrined in the Labor Code two main legitimate ways to conduct a legitimate reduction in official salaries. In the event of a crisis, the director may resort to such measures:
- Reduction of the official salary of an enterprise employee by agreement of the parties.
- Salary reduction on the initiative of the employer in compliance with specific requirements.
Any of the above methods is carried out in compliance with all the norms of Russian law and with the mandatory documented execution of the relevant actions. 
Salary reduction by agreement of the parties
When applying for a job, each employee preliminarily enters into an employment contract with the organization, where the salary amount and payment terms are clearly stated. The document is certified by the employer on the one hand and by the employee on the other. Based on this document, the employer does not have the right to change the size of the salary at its discretion. But at the same time, as already noted, he has the opportunity to resort to one of the legal methods in order to implement the need for a reduction in wages.
Today, in almost all regions of our country, the issue of employment is very acute. No one wants to be cut.Thus, the manager always has a 100% chance to conclude an agreement between the parties and to document the reduction of salaries to employees. The latter are invited to voluntarily agree to the conditions specified in the agreement, and thereby save the workplace. Perhaps no one has reason to believe that in this case the employee will refuse his signature. At the same time, he reserves the right to inquire on what basis this financial restructuring of his official earnings is carried out. In this case, the employer is obliged to explain the situation in the company and provide reasoned reasons for such negative actions on his part as a manager. In addition, he will need to indicate the relative time frame of his decision.
How long is a salary reduction allowed for employees?
If the manager has reason to believe that a similar situation at the enterprise or in the company will last a certain time, and then stabilize, he can promise the employee to restore his wages at the same level. Although it is worth noting that such a move is sometimes used by leaders and in the absence of good reasons for reducing earnings. The law does not prohibit and indefinite reduction in wages.
Decrease in earnings due to the initiative of the head
Salaries can also be reduced on the personal initiative of the employer. That is, unilaterally. A salary reduction at the initiative of the employer can be carried out in accordance with article 74 of the Labor Code of the Russian Federation. The reason in this case is the inability to comply with the organizational or technological conditions of the employment relationship prescribed in the contract. The manager can change these conditions, but he is not entitled to change the employee’s labor duties. Often, the concept of changing the above conditions implies a technological reorganization of enterprises or an objective change in the procedure for labor remuneration. For example, the transition from piecework to hourly wages, a decrease in previously adopted production standards, and so on.
Despite the vagueness of the wording of the articles of the law, the arguments for reducing the salary of an employee or a collective of employees must have very good reason. Despite the current negative economic situation at this or that enterprise and the fear of people losing their jobs, the employer runs the risk of being held administratively liable if his employee is deprived of his salary illegally.
Salary Reduction Order: Sample
Usually, employees agree with the arguments of their superiors in order to avoid losing their jobs. After receiving consent, the head issues an order to reduce the salary, which stipulates the entire list of reasons for the decision. Here, the agreed changes are mandatory reflected (for a sample document, see below).
The employer and employee can discuss, revise and even change the requirements in the contract. At the same time, consistency on both sides is documented.
Addendum to the employment contract
In addition to the order, an additional agreement is drawn up as a change in the employment contract. The clauses of this agreement prescribe all the innovations that should concern one or another employee or the whole team and according to which earnings will be cut. After signing this additional agreement, it becomes an official part of the employment contract, and the signatory is transferred to a new form of remuneration.
Employee written notice
The document contains information that the employee's salary will be reduced. It is drawn up in any form, but in any case it must necessarily contain the reasons for the changes being made, list all the clauses of the employment contract that will undergo changes.In addition, the final salary of the employee and a new range of duties are indicated.
The notice should also indicate the time frame for the employee to make the final decision. In the available box, which is intended for the written response of the employee, the latter shall write down “agree” or “disagree”. Further, if agreed, the signing of the document follows.
Notification of a decrease in salary (a sample of the kind you can see below) is compiled in any form.
All documentation is executed in two copies, one of which is transferred to the employee.
Reducing employee salaries: how to apply in 2017?
It is already known that the main documents confirming the legitimate decrease in earnings are the order and the supplementary agreement to the employment contract. These are the requirements of the Labor Code regarding salary reduction. How to document accompanying actions from the administration of the enterprise? The employer must act as follows:
1. Changing the organizational and technological working conditions and reducing the level of employees' salaries, the director of the enterprise is obliged to notify the staff about the introduction of these changes, at the same time issuing an order substantiating the reasons for the changes and specifying the changes.
2. Each employee must familiarize themselves with the order by signature.
3. Employees should be notified of changes in salaries and, accordingly, the reasons for such actions two months in advance, having received a special notice again against signature. Sometimes the deadlines for presenting notifications may be shortened. For example, when working as individual entrepreneurs. Here, the time allotted for the delivery of the notice may be only two weeks (14 days).
4. Notification of the employee and signature of the document.
5. If an employee refuses to sign a notice of a decrease in salary, an act is drawn up at the initiative of the employer, which is certified by witnesses. There should be at least two people.
6. With the consent of the employee, an additional agreement is concluded with which the new labor conditions are clearly defined, including the labor regime and wages.
7. If the employee refuses the proposed working conditions, he is provided with an alternative option, which essentially does not differ from the previous one.
8. When changing the employee’s place of work and signing an additional agreement, an appropriate entry is made in the workbook.
9. If the employee does not intend to continue to work at the enterprise due to the unwillingness to receive a reduced salary, the employment contract is terminated with him.
Expert Opinions on the Question
Regarding the reduction of salary at the initiative of the employer, many experts agree that in most cases, managers and their subordinates manage to reach agreement. The reason often becomes an objective assessment by an employee of his functions, acquisitions of some advantages associated with a reduction in the working regime, and a reasoned promise on the part of the manager to return earnings to the previous level after the crisis period.