Letter of Agreement for Reduced Pay

Dear Mr. Sam White, Good day. I am writing to remind you about the new salary reduction policy of our company which will be implemented with effect from 1st October 20XX. As discussed in the last meeting held on 25th September, we have been considering this policy for a while now and have decided to implement it from next week.

The company has been experiencing a huge financial loss due to a large batch of products lost in last month’s rat infestation. The batch was destroyed by the rats due to the negligence of some of the factory workers who have effectively been terminated from the company. To cope with this financial loss, we have decided to reduce the salary of the employees by ten percent per month.

I have attached the agreement form with this email. Please fill out the form, sign it and email it back to me if you are willing to participate in this agreement. I must inform you that if an employee does not wish to participate in this agreement, the company will have the right to lay off the employee temporarily or permanently. Please let us know your decision at your earliest so we can make arrangements accordingly.

Advertisement

We look forward to your cooperation in this matter. We assure you that the salary will be increased to the initial amount once the company is able to recover from this financial loss. Thank you for your consideration.

Regards,

Company CEO
Alex Richards.

Letter of agreement for reduced pay

2-

Dear Ms. Anna Winter,

This is to inform you that the company has decided to make a reduction in the salary of the employees with effect from 1st October 20XX. The company has been facing a considerable downturn in revenue due to the worldwide COVID-19 pandemic. As discussed earlier, the company will make a small reduction in the salary of the employees. We request you to sill the following details and send this back to us at your earliest

Full name:
Designation:
Salary per month:

I [NAME] agree to the company policy of ten percent salary reduction with effect from 1st October 20XX which will now amount to $1500 per month. I agree to the reduced payment amount until further notified by the company.

If you are willing to participate in this agreement, then please sign this letter and send it back to the HR department. We also wish to notify you that the company reserves the right to terminate the agreement of any employee who is not willing to participate in this agreement, as this would be a non-compliance with company policies.

To avoid any inconvenience, we have also arranged a meeting on 29th September to discuss this matter with any employees who are reluctant to agree to this. We assure you that we will try our best to extend the policy only until the company is in financial loss. We will increase the salary of the employees when the COVID-19 situation subsides, and we are able to get our sales back up again.

We thank all of you for your consideration in this matter

Regards

HR Manager,

Peter John.

Letter of agreement for reduced pay

Related posts

Leave a Comment