If you want to keep the job, sign it. If you don't, don't.
It's not quite that simple.
It's not quite that simple.
Then only you have the necessary information. Stop asking us and/or fishing for sympathy.
Ask HN: Should I sign a pay cut agreement?
51–60 of 67 posts
Re: Ask HN: Should I sign a pay cut agreement?
#52Re: Ask HN: Should I sign a pay cut agreement?
#53Once you sign that stuff, your overall compensation goes down forever. Your raise and bonus will less since it's based on your overall salary, which is now cut if you sign.
Then when the company lays you off, your severance package is even less due to the same reasons as above.
The whole thing is going to have cascading effect, and since you can't predict when you'll be laid off given how cavalier they've been doing it so far, better not to sign it. Seems like the company is trying to cut costs before laying off again to save even more money.
And even if you are laid off because you didn't sign, at least you'll have the satisfaction that you didn't bend over backwards for their crap. Staying true to yourself is what you'll regret the least in the long run.
Re: Ask HN: Should I sign a pay cut agreement?
#54I was once asked, during the original dot-com crash many moons ago, to take a pay cut. I replied, essentially, that this was fine by me, as long as I could cut my weekly hours proportionally (I was working full time). I never heard anything more about it, and my pay was not cut, nor was I asked to reduce my hours. This was a small company, and at the same time, other people at the company were being let go.
This is the way to go.
Re: Ask HN: Should I sign a pay cut agreement?
#55In the US they don't do this. The thinking is someone getting a lower salary and the same job will not be very motivated. It's better to just get them go and keep other employees at their same level or higher.
I think this is mostly true but depends on the industry and "critical mass". If you have enough people, then letting people go and then filling in with OT hours (remaining people) is still more cost effective all things being equal (some people may actually welcome the OT hours here and there) and not chronic understaffing
Re: Ask HN: Should I sign a pay cut agreement?
#56Around 2010 the company I worked for had a pay freeze. Most employees worked in the office, but about 1/4 worked remote. About three years later the freeze was lifted. The in office employees were notified about said policy change and got raises shortly thereafter. Us remote employees didn't know about the change until almost 2 years later. After an in office employee mentioned it to one of us.
When we brought it up to management they were apologetic, and said they forgot. I work for a small company that wasn't particularly organized so it's possible they forgot but still. :(
TL;DR; If you take the pay cut, check in every few months with both management and others at your level.
Re: Ask HN: Should I sign a pay cut agreement?
#57In the US they don't do this. The thinking is someone getting a lower salary and the same job will not be very motivated. It's better to just get them go and keep other employees at their same level or higher.
That's not true - my last two companies have done haircuts along with layoffs. At my current company we were promised a bonus of Nx the haircut at a certain point in time as compensation...though whether that happens or not is still to be seen.
Did they make that promise in writing?
Re: Ask HN: Should I sign a pay cut agreement?
#58I feel your pain... heaps of credit card debt but was making a very good salary and my company cut my pay and only gave me a month's notice, so I've spent 2 years essentially playing catch up now to pay off my credit cards instead of the 6 months it would've taken.
I didn't get a choice though I didn't sign anything either. It just happened. So now I just show up and do my job. Nothing more, nothing less, no overtime, I don't volunteer for any additional projects. Very cut and dry. After 10 years of working for the same company and that's the thanks I get, I appreciate the fact that I'm still employed. And that is all I need to be.
You may be stuck or just don't sign.
Re: Ask HN: Should I sign a pay cut agreement?
#59So basically here in South Africa this isn't illegal, but you need to consent to it. The company's choice after that is to either ignore it or to start a Section 189 retrenchment process. Also there are some other rules in place that regulates when it's ok to do and when not.
Have a look at this link for some more answers: https://deale.co.za/unpaid-salaries-labour-law-in-a-nutshell...
Overall I'd go with 10% isn't a huge problem and to just agree to it, but keep your eyes open. I know of other companies during Covid that did 50%, or reduced working hours etc.
Re: Ask HN: Should I sign a pay cut agreement?
#60Just as a general negotiating tactic / principle, I'd avoid doing this for free / nothing.
I'd respond positively and explain that you understand the situation and would like to help. See if they can offer fewer hours, more vacation time, equity, debt, promotion... literally anything in exchange for this reduction.
Everything has a price, and nothing is for free.