Can you legally reduce someone’s salary?

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Non-legal risk 

While there are evidently some important legal risks to consider, employment lawyer Coulter acknowledges they’re not the only ones threatening organizations during a salary change.

“You can have cases where the changes made aren’t significant so from a legal point of view you may not be as concerned about a constructive dismissal,” begins Coulter, “but employers should still be concerned about maintaining a good workplace where the workforce is happy and willing to come to work and do the job every day – not having workers feel like they’ve been slighted.”

Whatever the reason for changing an employee’s salary or compensation system, Coulter stresses that employers should always do it in the most sensitive way possible.

“You need to do it in a way that’s humane and recognizes everybody’s best interests as best as possible because you want the employee’s buy-in, hopefully to do whatever it is you need to do from a business point of view.”

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