Over the past month we have had a significant number of executives contact us about being stood down, and their concerns about redundancy, reduction in pay of between 15% to 30%, and possible termination of their employment. This concern appears to be particularly high among certain categories of executives over this COVID 19 pandemic period, including:
- Marketing/Advertising Managers, with pay usually around $150,000 + benefits;
- Fashion Industry Executives with pay usually around $150,000 + benefits;
- General Managers in a whole range of industries, including manufacturing and sales (car and motor vehicle) whose salaries are $200,000; and
- Human Resources Managers who are earning between $150,000 to $250,000.
From the data we have collected, it appears to us that a number of businesses are planning further reductions in these ranks when operations return to the workplace over the next 8 weeks, and when the JobKeeper Payments are faded out. We also anticipate that a large portion of high-paid casual and ‘contract’ employees are also unlikely to be re-engaged. Particularly in the hardest hit sectors of marketing, fashion, general managers and human resources. These are areas that many business owners and directors believe they can make cuts without an immediate impact on operations.
Organisations are now working on strategies to cull and even abolish these roles, and re-delegate these tasks to other managers.
Some managers have seen the writing on the wall, and have felt forced to take pay cuts, or have been directed to take annual leave. If they have not formally agreed to this with their employer, then this constitutes non-compliance with IR laws.
JFMLAW has been working with managers to resolve employment law issues for 30 years. The COVID 19 pandemic has thrown up a whole series of issues for managers which we are working our way through. We pride ourselves in having commercial and practical solutions for most problems faced by managers.
Remember, all managers have a right under the Fair Work Act to raise a complaint about pay and being forced to take annual leave. Managers are usually not covered by an Award, but if you have raised a complaint and been dismissed (either directly or constructively) you are likely to have a legitimate claim in the Fair Work Commission.
We are happy to have a no-obligation and confidential chat with you over the phone to see if we can assist. You can call John Morrissey, Thomas Du or Tyler Farr directly on their mobiles, and if we are not available, we’ll get back to you by the end of the same day. Don’t leave things to chance, put in place your counter-measures to avoid being the victim of a ‘culling’ strategy:
- John Morrissey – 0407 069 507
- Thomas Du – 0410 882 437
- Tyler Farr – 0410 906 194