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Generally, your employer is obliged by law and under your contract of employment to pay you in return for the work that you perform. They may be in breach of contract if a decision is made to reduce or cease your pay without your consent.

Action taken by your employer to cut or cease your pay without your consent may also amount to a dismissal. We recommend that you seek legal advice urgently if you find yourself in this situation.

If an Award or Enterprise Agreement applies to your employment, then it’s likely there will be some minimum conditions and rates of pay that are protected and your employer cannot avoid or change.

If your employment is governed by a contract of employment, then your employer might be able to approach you with a proposal to change the value or manner of your pay. However, it is important to know that you do not have to accept this proposal.

Depending on the circumstances of your case, there may be consequences for your ongoing employment if you are not able to reach an agreement with your employer.

The questions and issues arising from any proposal to change your pay can be complex. We recommend you seek legal advice if your role is being made redundant, or if your employer asks to reduce your rate of pay.

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