Casual employee hours can be readily changed in response to your business needs however reducing the hours of a full-time or part-time employee requires the employee’s acceptance in writing. A written record can help protect a business if any questions or legal issues arise regarding the reduction of hours. It is recommended that you discuss the reduction with your employees first before sending out the notice to reduce their hours.  

Standing down employees

If your business cannot operate normally during this time, you may be able to stand down employees. This is only applicable for businesses that have been forced to close due to an unforeseeable event. Standing down your employees also indicates that you intend to get your employees back to work as soon as your business is able to.

Consequences of reducing hours

When reducing your employee’s hours, you should also consider other effects it may have. This includes loss of sales and your employee potentially moving on to a new job with increased hours of work.

Use this Notice of Reduction of Hours if:

• You would like to reduce a full-time employee’s working hours.
• You would like to concisely explain to the employee why his or her hours need to be reduced.
• You want to follow all the proper processes in reducing the employee’s working hours.
• You would like to have a record of the reduction of hours in the event of any legal action.

What does the Notice of Reduction of Hours cover?

• Information about the change of working hours, e.g. what the change will be and when it will occur.
• The reasons why this change is necessary for the company.
• Invites employees to give their views about the impact of the change.

Other documents you may need:

• What is Payment in Lieu of Notice?