Rate cut - 20% salary cut + 10% less hours - Acceptable?

[jf2010]

Are you on an hourly rate? That’s a bit strange

Yes, always been hourly rate. (max 40 hours and now reduced to 36)

Yes original contract was on site. Due back in the office beginning of Sept

[Old Greg]

I'm on an hourly rate. First time in 16 years...Not so strange in "The Industry" I'm in...

I've always been on a daily rate but the client very decently offered to convert it into an hourly rate while I'm working additional hours for Covid 19 related projects. Then we had to start working at home, so I'm billing 1.25 days per day for a shorter day once my commute is taken into account.

[LondonManc]

Been told today all contractors must take a 10% cut in hours (to 36 hours) (which is fine) and also a 20% rate cut. 5-10% rate cut I would consider but 20% seems very high along with the reduced hours.

I know this topic has been discussed recently here but my question is: Is 20% a normal cut to what you have experienced.

Just to be clear, are you getting 80% of the money for 90% of the work or is it a compound 72% of your previous billable week?

[silent bob]

This sounds like ING to me. and it's a double wammy. So it's 72% of previous rate

[LondonManc]

This sounds like ING to me. and it's a double wammy. So it's 72% of previous rate

That's crap then. I'd accept the drop from, say, 2500 to 2000 per week if you're finishing at lunchtime on Fridays but I'd be looking at other options as well.

If you've got nothing else, check the notice clause on the reissued contract and start looking if that's not prohibitive.