20 September 2010
Employers 'could face more grievance claims if they freeze pay completely'
More employers could find themselves facing legal action over grievance and discrimination claims in the near future, if an expert's comments are to be believed.
According to Phil Flaxton, chief executive officer of Work Wise UK, many organisations are showing signs that they may use the global economic downturn as an excuse to take "unscrupulous" measures such as implementing complete pay freezes on their workforce.
And, due to the fact that many members of staff may now be expected to fulfil larger roles within companies than before the recession because of budget cuts and redundancies, workers may feel that blanket pay freezes across an entire firm could be cause for grievance.
Mr Flaxton commented that this represents a "complex scenario" but added that he had come across "more and more organisations where, since the recession started, there has been a complete pay freeze".
The number of employment tribunals in the UK has risen over recent years and a total halt on wage rises may cause this trend to continue.
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Posted by Richard Saunders