April 4 2013.

With economic conditions remaining difficult, some businesses are being forced to consider reducing the wage bill. But pay cuts must be negotiated not imposed and, in principal, an employer cannot impose a pay cut unilaterally.

This is the case whether the employee is employed on a permanent or temporary contract. An employer should always seek an employee's consent for any reduction in pay. Employees do not have to accept a proposed change, unless they are subject to a collective agreement with their union and the union agrees to accept the reduction on their member's behalf.

Find out more about the consequences of cutting pay by turning to the Business Journal pages in the April issue of Motorcycle Trader.