How to implement a pay freeze

Author: Sheila Attwood

Summary

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• Think about why a pay freeze might be appropriate for your organisation.
• Review the wording of individual employment contracts to check whether or not employees are entitled to an annual pay increase.
• Where appropriate, involve trade union representatives in negotiations, even if the result is for no pay increase to be awarded.
• Consider how to apply the pay freeze to employees, and whether or not there are any alternatives to freezing pay for all employees.
• Keep an eye on employee motivation levels, and consider ways to offset the pay freeze.