Have reduced work hours left you short of cash this August in Bristol UK? 

Have you received an email from your employer informing you that your working hours have been reduced due to insufficient business? If so, you are far from alone. A few companies have decided to reduce the working hours of their employees to save money as businesses are struggling. Usually, when such policies are implemented, prior discussions are held. Unfortunately, many employers are being ruthless with their approach by sending notices to them out of the blue. 

While your existing contract might not have a clause for reduced working hours, which, when imposed unexpectedly, seems like a breach, your employer reserves the right to adjust working hours to sustain operations despite financial hardships. An open discussion with your employer will enable you to explore your prospects, but as a matter of fact, many end up resigning themselves to a new proposed policy and discovering other full-time opportunities.  

Reduced work hours mean financial strain. Your monthly salary will dwindle, resulting in difficulty in paying down a mortgage and meeting essential expenses.  

What should you do to overcome a financial setback? 

Undoubtedly, your wages will reduce because of reduced work hours. It is not possible for everyone to find another job. So, if you are one of those who are struggling with your finances due to reduced work hours, you should take the following steps: 

• Take advice 

Although employers have the right to lay off people when there is insufficient work, there must be a clause related to this in your job contract. Likewise, your contract must have a clause regarding reduced work hours. No company can change shift days without prior notice. You should talk to your employer regarding this. You must be told what has led them to this decision.  

If your current contract does not have a clause about reduced work hours, you should not accept your new contract. Take some legal advice to know your rights. Normally, companies make employees redundant and offer them notice pay. Reduced work hours might be a strategic move to avoid paying notice pay for some companies to make employees step down by themselves.  

• Cut back on your expenses 

It is not always possible that you will win the argument. Chances are you will have to accept reduced work hours or look for other full-time opportunities. Of course, you will be struggling with finances. If that is the case, you should try to re-evaluate your finances.  

• You will have to create a new budget. Your new budget will be based on your revised wages.  

• It is crucial that you make a list of all expenses and then check whether you can cover them from your existing income. 

• If not, you should cut back on discretionary expenses. Unless your financial situation improves, you should try to completely ban inessential expenses. 

• If you are still struggling, figure out how you can whittle down your essential expenses. For instance, you can save money by making a bulk purchase.  

Use a budgeting app to track your expenses and fine-tune it.  

• Get a side gig 

Sometimes, you have no choice other than biting the bullet, but despite that, you should never stop putting in effort. Keep looking for full-time opportunities. You cannot help but find an opportunity over time, so keep trying. In the interim, you should find a side gig. It could be anything, such as: 

• Walking a dog 

• Babysitting 

• Pet sitting 

• Freelancing 

With a side gig, you will be able to make some money that you can utilise to meet your essential expenses more smoothly.  

• Inform your lenders  

Since you are on reduced wages, you will find it hard to discharge your obligation. First off, inform your lenders immediately that you are on reduced wages and hence you would not be able to adhere to your current repayment plan. Make sure that you inform us as immediately as possible because a delay will result in late payment fees and a poor credit score.  

Your lender will reconsider your repayment capacity and then put you on a revised payment plan. Be honest with your financial condition, so you do not struggle to make payments.  

• Borrow money only when it is urgent 

Despite slashing expenses, you may not have enough money to meet your expenses. If an emergency has come up and you do not have enough money to pay for it, you can take out a loan for reduced income in Bristol, UK.  

An emergency loan comes with an exiguous amount of money and therefore it is required to be discharged in fell one swoop. You should always carefully observe your repayment capacity, so you do not fall behind on payments. Have a decent credit report because otherwise, interest rates will be higher.  

At the time of borrowing money, compare your loan deals with others. As every lender charges different interest rates, make sure that you receive the best deal. Borrow money from a lender who provides an urgent loan in Bristol in the UK at the lowest possible interest rates. 

• Apply for benefits 

When you are on a reduced income, you are entitled to a wide range of benefits from the government. These benefits include universal credit, housing benefit, etc.  

You will have to check your eligibility to apply for these benefits. These benefits will help you meet living costs when you are struggling with your finances. 

Summing up 

If reduced work hours have left you short of cash, you should consider recreating your budget and tracking your expenses. Talk to your creditors to obtain revised repayment plans that align with your current financial position. Get a side gig and in the meantime, keep looking for a new job.  

Of course, it is quite challenging to manage your money when you are on reduced wages, but with the aforementioned steps, you will be able to cut it.