Home › Forums › Labour Law Debate › CAN EMPLOYERS LEGALLY REDUCE THE PAY OF EMPLOYEES WORKING FULL TIME? › Reply To: CAN EMPLOYERS LEGALLY REDUCE THE PAY OF EMPLOYEES WORKING FULL TIME?
In the case of Macsteel Service Centres SA (Pty) Ltd v National Union of Metal Workers of South Africa and Others (J483/20)  ZALCJHB 129 (3 June 2020) the court decided that any variation to an employee’s salary, irrespective of whether it is increased or decreased, amounts to a change in terms and conditions of employment and cannot be effected unilaterally. It dealt specifically with a reduction of salaries of employees who were working full time during Covid and whose employers reduced their salaries due to loss of business. This makes it clear that the courts will not tolerate such unilateral reductions.