COVID-19 and business: Employee voluntary salary reduction plan

If you are an entrepreneur, no doubt that your business is your primary concern at the moment. We are seeing little or no turnover, loss of contracts, loss of revenues, whilst we still need to operate therefore, pay bills, rents, loans, salaries…

During these difficult days we have come up with some temporary suggestions and solutions for you to consider for your business:

• Rental contract — check for force majeur clauses, ask your landlord to give you complimentary months, or to renegotiate contract.
• Reduce staff — those employees who are on probation can be made redundant.
• Opening hours — analyse the flow of business and adjust to open for less hours.
• Stock — Strict stock ordering, heavy sale unsold items to generate cash.
• Government aid — avail yourself from the government measures which are being issued.

However, one of the biggest costs for your business could possibly be salaries, therefore we have come up with some tips to reduce such costs and avoid losing valuable employees. These measures can give immediate boost to cash flows needed for your business to survive.

• Reduce working time and pro-rate the salary accordingly.
• Postpone any commissions.
• Postpone any performance bonuses.
• Ask employees to make use of their annual leave.

Our legal department can provide you with the relevant Contracts for Voluntary Reduction in Salaries to be annexed to the current employee contract.

For more details please check out the following page https://fairwindsmanagement.net/covid-19-and-your-business or contact us on +35679890072 or asciberras@fairwindsmanagement.net.

Article originally published here: https://fairwindsmanagement.net/covid-19-and-business-employee-voluntary-salary-reduction-plan