reducing an employees hours from fulltime to part time
This can easily be done by taking revenue generated divided by your total number of employees. Pay cuts are often made to reduce layoffs while saving the company money during a difficult economic period. And what else do I have to know before making these changes? Dan is also a regular contributor to Forbes. But as an employer, what happens when that comment becomes a reality? Workest is powered by Zenefits. A reduction in hours and/or pay can have a significant impact on employees. Cutting your hours by 20% would normally be easily considered constructive dismissal if you were hired (or promoted to) a full time position. First, the logistics of doing this can be overwhelming to managers and human resources. Unions are crying foul but United asserts it is still in compliance with the CARES Act. The Affordable Care Act (ACA) requires employers with 50 or more full-time and full-time equivalent (FTE) employees to offer health coverage to full-time employees (those who work on average 30 or more hours per week) and their dependents. And that is just one person! If you’re going to transition an employee from full-time status to part-time and their hours will not extend beyond part-time, then you can decrease their pay. He also has a different schedule, so he will have to figure out different child care, and miss some of his night classes that he is taking to get his degree. the employee is not simply reducing hours at the employee’s existing job. That is because each participant has his or her own account, […]. An employee’s full-time status determined in the measurement period determines the employee’s status during the subsequent stability period. However, employers may change exempt employees' salaries prospectively to reflect long-term business needs, provided such adjustments are not related to the quantity or quality of work performed, are not made to avoid salary basis requirements, and the employee still receives at least $455 per week on a salary basis. Spending too much time on HR, not your business? A law called the Employment Standards Act, 2000 (ESA) sets minimum standards for things like pay, hours and time off.Most workplaces in Ontario must follow this law and your rights are the same whether you work full-time or part-time. This blog provides practical information on the subject matter. Employment at will means that when workers don't have a formal employment contract or are covered by a bargaining agreement they can be terminated, demoted, and have hours reduced or pay lowered at the company's discretion. What are the risks, if any? You will also want to state whether or not these reduced hours will change the employees’ overall tenure at an organization (as this could impact retirement). Check your state law for more information. The employee is transferring to a new position that is classified as part-time and includes different job duties than the employee’s prior position. Charles warns that before implementing a redundancy, employers should consider the impact this might have, not only on the employee concerned but on staff morale, especially if a long-time worker is retrenched. All other marks are the property of their respective owners. A1: The employee must be offered coverage through the entire stability period. The easiest option would be to reduce his hours to four days per week. I am on leave due to no schooling for kids under the COVID-19 act. Your understanding, support, and co-operation to help Broadway Inc. endure the current economic situation is greatly appreciated. Howard is a single dad that relies solely on the income of his employment with your organization. Finally, make sure to include this employee’s new work schedule in the letter. For example, if your executives just want to keep costs low over the summer, but don’t see a need to eliminate all of their workers, it might make sense to implement a furlough. Be sure to handle the situation carefully and equitably and comply with applicable federal and state laws. They key here is to find a way to measure it, and then compare productivity levels before, during, and after the reduction in work hours. Kathy WilliamsVice President, Broadway Inc.123 Maple StreetHudsonville, NY, USA 10711. The federal minimum is $7.25 per hour. When employers reduce wages, they are required to do it in an equitable manner. A humorous comment made in a former workplace of mine was “never take too many weeks of holidays in a row lest the boss finds out that he can manage without you!”. Where an employee has recently changed from full-time to part-time hours how should their redundancy payment be calculated? The employee is transferring to a new position that is classified as part-time and includes different job duties than the employee’s prior position.