Re: Cut Wages for Over Market Rate Staffs to Market Value
I have formed a company 9 years ago and experiencing losses every year. Obtaining loan from banker, friends and shareholder to keep the business to move on. Eventhough, my Company did not generate profit, I still increase staffs salaries and paid bonus (1-1.2 months) to appreciate their work and I believed the turn around will come.
At 7th year, my Company really facing tough financial problem, the only way to keep surviving is to restructure and reduce wages/fixed costs. Staffs with overpaid market value/rates (Monthly earning of RM3500 -RM6000) were reduced to either market rate or slightly higher (reduction of RM500 - RM1200per month), else my Company had to terminate their service. All of them stayed with reduced wages than resigning.
Last year, my Company made the 1st profit (but not enough cover losses over the last 8 years). Can my staffs sue the Company to compensate back their "cut-wages" when the Company makes good profit in the future?
Thank you for reading and awaiting your reply asap.