The company that I was working for asked me to take a pay cut. I asked them what my alternatives were, and my boss said that I didn't have any. She said accept the pay cut or leave the company, so I just left. For me, it was a simple decision, but for others, it may not be as easy.
A review of the Labor Code will show us that it is illegal for your boss to reduce your salary because of the company's poor performance. At least that is how I interpret it.
Brief Excerpt from the Labor Code 1998 Version.
The Labor Code
Title II, Chapter IV: Prohibition Regarding Wages
Art. 113. Wage Deduction
No employer, in his own behalf, or in behalf of any person, shall make any deduction from the wages of his employees except:
(a) in cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance;
(b) For union dues, in cases where the right of the worker or his union to check off has been recognized by the employer or authorized in writing by the individual worker concerned; and
(c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor.
Art. 117 Deduction to ensure employment.
It shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in his employment.
[This message has been edited by Noisy Cricket (edited 08-14-2000).]