PAY - 20.06.2011
More employers will freeze pay this year
No pay rises. The CIPD has recently reported that at least 25% of employers have no plans to increase staff pay this year; many of them froze pay last year and in 2009 too. While this won’t go down too well with employees, provided your contracts clearly state that pay rises and/or reviews are “discretionary”, this is a perfectly acceptable approach. A short letter explaining your position and the reasons behind it should avoid any misunderstandings and/or complaints.
For a free sample notification of pay freeze letter, visit http://personnel.indicator.co.uk(PS 13.13.08).
According to the CIPD, at least 25% of employers are planning to impose a pay freeze this year. Provided your contracts state that any pay rises and/or reviews are “discretionary”, this decision is perfectly legal.
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