Consent to Salary Reduction

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DOCX
Pages
2
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Document Overview

A Consent to Salary Reduction is a written agreement or declaration signed by an employee confirming that they voluntarily accept a reduction of their salary from a specified date.

It is usually prepared when an employer, due to financial, operational, or restructuring reasons, cannot continue paying the employee’s full salary and seeks the employee’s agreement to revise the salary downward - either temporarily or permanently.

Purpose:
1. The Employment Act, 2007 (Kenya) requires employee consent before altering salary or contract terms. This document ensures the reduction is lawful.
2. Provides written proof that the employee voluntarily accepted the change, protecting both employer and employee from disputes.
3. Clearly sets out the old salary, the new salary, the percentage reduction, and how long it applies.
4. Allows the employer to adjust costs while retaining staff, avoiding termination or retrenchment.
5. Shows transparency and mutual understanding between employer and employee.

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