Punative pay reduction

Assuming the reason for a pay reduction is due to non-performance of some kind, advance notice of impending action is recommended. This should be accompanied by putting the employee on a probationary period (30 to 90 days) to give the employee the opportunity to correct the unacceptable performance.

The employee should be given a written explanation of the steps being taken, and he or she should sign that they understand the reason for the actions.

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