Salary Reduction Letter Due to the COVID-19/Coronavirus Crisis

The COVID-19 Salary Reduction Letter is the notice or letter an employer uses to notify their employees of a proposed salary reduction due to the coronavirus pandemic.

With the current coronavirus crisis that is plaguing the entire world, many businesses are facing an economic downturn, and are unable to pay their staffs' salaries. In response to this problem, some employers may grant compulsory leave of absence to their employees or reduce their salaries. In other words, this document should be used when the employer can not afford salaries and but also, does not intend to terminate their employee's employment.

The document outlines the employee's current salary, the reduced salary, and the reasons for the reduction. By using this document, the reduction in salary is documented in writing to avoid any misunderstanding or dispute over the employee's remuneration.

Note that this document is different from the Furlough Letter as it is used to place the employee on a compulsory leave of absence the employee from work due to financial problems of the employee. During the furlough period, the employee will not be working for the employer or receive any salary. However, with this letter, the employee will be entitled to reduced pay.

How to use this document

This document details the names and addresses of the employer and employee, the employee's current salary, the reduced amount, and the effective date.

After filling the form, the employer should sign this letter and deliver it to the employee either by hand or my email. The employer should also keep a copy of the letter for record purposes.

Applicable law

The Labour Act, 2004 is the primary legislation that regulates employment matters in Nigeria.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.