Two-thirds of employers consider cutting pay for working from home – what are your rights?

TWO-thirds of businesses are considering slashing the pay of employees who decide to work from home permanently.

According to the latest research, as many as 68% of British firms are contemplating pay reductions.

A survey of 150 businesses by HR software provider CIPHR found that 97% will let staff work from home at least some of the time now lockdown is over.

But the shift towards remote working could come at a cost for some employees.

Some major employers have already announced changes.

Google has said US employees who switch to permanent home working after coronavirus restrictions are lifted will face a pay cut.

Other tech giants including Microsoft, Facebook and Twitter have offered staff in the US less pay if they're based in cheaper locations.

This month a senior minister reportedly said it's unfair that civil servants still working at home should get the same benefits as those commuting in.

Location allowances, including extra money for London-based positions, have already been scrapped by many firms.

According to the research, 86% of employers have already suspended, reduced or removed geographical premiums.

Most of the changes have been temporary, but 14% of the businesses surveyed have made the changes permanent, the survey found.

Workers who want to be fully based at home are more likely to face a pay reduction than those who want to spend some time in the office.

In total, 39% of employers said they would cut the wages of permanent home workers, compared to 29% for "hybrid" staff.

Claire Williams, director of people and services at CIPHR, said: “Employers need to tread very carefully if they are going to look to remove location allowances or cut wages based on location, as a result of the shift to more home working.