Can employers in B.C. cut a worker’s pay?

In B.C., your employer can’t significantly reduce your salary or wages without your consent. If major changes are made to your job, it may be considered a constructive dismissal. You would be entitled to a full sevesrance package as if you were fired without cause.

A company may have the ability cut your compensation by less than 15-20 per cent without permission. However, you should always speak to an experienced B.C. employment lawyer at Samfiru Tumarkin LLP before accepting any changes to your employment or before quitting your job.

LEARN MORE
• Do I get severance if I quit?
• Should I negotiate my own severance package in B.C.?

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

What do I do if my employer directs me to take a pay cut, but I don’t want to?

Unless your employment contract gives your employer the ability to adjust your salary or commission, your boss can’t legally force you to accept a pay cut.

If your boss tells you that you must agree to the reduction, make sure you:

• Get the terms of the pay cut in writing
• Request an adequate amount of time to consider the modification before accepting

Throughout this process, you can simply object to having your wages reduced. Clearly state in a letter, email, or text message to your employer that you don’t consent to the change.

If you reject the pay cut in writing, and your company still goes ahead with it, contact Samfiru Tumarkin LLP.

We can inform you of your legal options based on how much your salary or commission has been reduced.

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My employer is pressuring me to sign a new employment contract, what should I do?

In some cases, employers ask non-unionized workers in B.C. to accept a new employment contract that gives the company permission to modify their salary or commission.

If your boss provides you with a new agreement, don’t sign anything before seeking legal counsel. You don’t have to accept it immediately or a few days after receiving it.

Employment contracts often take away key protections that would otherwise be available to you.

An experienced employment lawyer at Samfiru Tumarkin LLP can review the agreement and ensure that your workplace rights are properly protected.

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• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Validating a new agreement

In Canada, employers must provide non-unionized workers with an additional “benefit” in order to validate a new employment contract.

Potential benefits could include:

• A raise or promotion
• Extra vacation days
• More flexibility working remotely

If your company didn’t include an additional benefit in the new agreement, or you aren’t sure that one has been provided, don’t sign anything before contacting Samfiru Tumarkin LLP.

SEE ALSO
• Pay raises: Rights for employees in B.C.
• Vacation Pay in B.C.: Your Rights

My employer sold the business, can the new owner make changes to my pay?

If you receive an employment offer from the new owner of the business, and have a good reason for why you don’t want to accept it (i.e. reduced pay), you can get full severance pay from the person or group that sold the company.

• Example: Susan works for an independent auto repair shop in Surrey. She is told by her boss that he is going to sell the business to a local competitor. Following the sale, Susan receives a job offer from the new owner, but the employment contract requires her to accept a 19 per cent cut in pay. This significant change to her salary made it reasonable for her to reject the offer and still receive full severance pay from her former boss through help from an employment lawyer at Samfiru Tumarkin LLP.

Even without a good reason for turning down a job offer from the new owner, you can still get a severance package.

However, it’s very likely that you will only receive the minimum amount of compensation required under provincial or federal legislation.

LEARN MORE
• Sale of business in British Columbia: Rights to severance
• Employee rights when a company closes

Can my employer punish me for refusing a cut in pay?

Your employer can’t make significant adjustments to the terms of your employment to punish you for objecting to a pay cut.

Major modifications, such as a demotion or shorter shifts, are illegal in British Columbia.

If you refuse a substantial reduction to your salary or commission, and negative changes are made to your job shortly after, contact an experienced B.C. employment lawyer at Samfiru Tumarkin LLP.

We can confirm that you have been constructively dismissed, assess your legal options, and ensure you receive the compensation you are owed.

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• Employment Law Show: Reprisals at work in Canada
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Can my employer fire me for refusing a cut in pay?

In B.C., employers can fire non-unionized workers for refusing a pay cut — even if the worker provides a strong argument for why their salary or commission shouldn’t be changed.

This is called a termination without cause. Companies can let you go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

It’s very unlikely that your boss would be able to fire you for cause in this situation, which would mean no severance package or access to Employment Insurance (EI) benefits.

This type of termination is reserved for the worst kinds of workplace offences, such as serious insubordination, theft, or assault.

Not only does your employer have to prove progressive disciplinary measures were applied, but that a lesser punishment wouldn’t be suitable, which is very difficult to do.

LEARN MORE
• How to calculate severance pay
• Severance pay in a recession
• Wrongful dismissal in British Columbia: Your rights

Lost your job? Speak with an employment lawyer

If you are fired or let go after refusing a pay cut, or for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in B.C., Alberta, and Ontario have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.