# PAY REDUCTION AGREEMENT
Date: 4 March 2034
Parties: Larkspur Events Ltd and Callum Reid
## 1. Purpose and parties
Larkspur Events Ltd of 61 King Street, Newcastle upon Tyne NE1 3DX and Callum Reid of 28 Fern Avenue, Gateshead NE8 4TR agree this variation on 4 March 2034. Callum is an events manager under a contract dated 12 October 2027; this agreement changes his salary only for the period stated.
## 2. Facts, scope and terms
From 1 April to 30 September 2034, Callum's gross annual salary will be £36,000, paid monthly at £3,000 before lawful deductions, instead of his current gross annual salary of £42,000, paid monthly at £3,500. The £500 monthly reduction applies for six months, totalling £3,000 gross, and is not retrospective.
## 3. Process and responsibilities
The reduction is agreed in response to a documented fall in event bookings and is not a waiver of wages already earned. Callum's hours, role, holiday entitlement and other contractual terms remain unchanged unless this agreement expressly says otherwise. The company will not deduct below the National Minimum Wage for hours worked.
## 4. Evidence, records and safeguards
Larkspur will review trading and the arrangement on 1 September 2034. If no written extension is agreed, Callum's salary automatically returns to £42,000 a year (£3,500 monthly) from 1 October 2034. Any bonus, commission, pension contribution or benefit calculated by salary will follow its governing terms and any required consultation.
## 5. Review, escalation and outcome
The parties will notify the pension provider and payroll where required and recognise that tax, National Insurance and pension outcomes depend on the applicable rules. Callum's accrued holiday, expenses and salary earned before 1 April are unaffected. The company will give payslips showing the agreed gross amount and lawful deductions.
## 6. Reservations and practical protections
Callum may raise questions with payroll and may withdraw before 1 April by written notice, in which case the existing salary remains unless the parties agree another lawful variation. Larkspur will not treat refusal or a protected complaint as misconduct or subject Callum to unlawful detriment. Any later change must be clear, written and agreed.
## 7. England and Wales law and completion
This completed fictional agreement is governed by the law of England and Wales and records consent to a defined temporary variation, not an unrestricted power to reduce pay. It does not contract out of employment, equality, working-time, minimum-wage or whistleblowing protections. Both parties received a copy and had the opportunity to obtain advice.