close
e-Sign with Lawpath

Notice of Reduction of Salary

This Notice of Reduction of Salary is a letter explaining that you are reducing an employee’s pay when your business is facing challenging times.
star
star
star
star
star
5.0 (2 reviews)
timer
Under 5 minutes
location_on
Suitable for Australia
Get 1st document free

Document Overview

The reduction of salary should always be authorised in writing by the employee and is principally for the employee’s benefit. A written record can help protect your business if any questions or legal issues arise regarding the pay reduction. 

You can face up to $12,000 in fines if you do not have ethical reasons to do so. Therefore, it is recommended that you communicate with your employees before reducing their salaries in order to obtain their understanding and reach a mutual agreement.

Use this Notice of Reduction of Salary if:

  • You would like to reduce an employee’s pay due to reasons other than their performance.
  • You would like to concisely explain to the employee why the pay cut is necessary.
  • You want to follow all the proper processes in reducing the employee’s pay
  • You would like to have a record of the reduction of salary.

What does the Notice of Reduction of Salary cover?

  • Explains the reasons why the pay cut is necessary.
  • Informs the recipient when the pay cut will be implemented
  • Sets out the new pay rate and the effective date

Other names for Notice of Reduction of Salary include:

  • Notice of Pay Reduction
  • Salary Reduction Letter
  • Notice to Reduce Payment
  • Notification of Pay Deduction

Further Information:


It's never beenso easy
stars
Sign-up to a free Lawpath accountLawpath is free to join, and you get one free legal document when you sign-up. Also, you can receive unlimited e-signature requests with your Lawpath account.
local_library
Browse our 350+ legal documentsBrowse our 350+ legal documents to find the perfect match to cover your business needs. We’ve got Compliance, Employment, Service agreements and more.
drive_file_rename_outline
Collaborate with e-Sign and SharingHaving access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $33/month.
Learn more
Here's what people say about Lawpath’s Notice of Reduction of Salary
No reviews available.
Powered by
Looking for more documents?
chevron_right
Privacy Policy
chevron_right
Cleaner Contract
search
Browse all legal documents