How to implement a pay freeze
Author: Sheila Attwood
Click on any of the hyperlinks to go to more detailed guidance below.
- 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.