A month after I was hired, my hourly pay was reduced. What recourse do I have?

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When an employer unilaterally makes a significant change to an important term of employment, employees can refuse the change and claim a breach of contract. For example, a significant and unauthorized reduction in pay can be treated as a “constructive dismissal,” which essentially triggers a termination of employment without cause and gives rise to a claim for severance pay.

Because every situation is different, for some employees it can absolutely make sense to pursue that course of action. But for this individual, query whether the smarter move is to simply start looking for a new position while continuing to collect a pay cheque. As the saying goes, it’s typically easier to find a job when you have a job.

In employment law, any modification of the contract terms proposed by an employer must be supported by fresh consideration – that is, a new benefit or detriment must be exchanged between the parties. Simply put, your employer cannot lawfully decrease your wage to $18 per hour without offering you something in return, which you must accept for such a change to be valid.

Source: Law Daily Report (lawdailyreport.net)

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