Add Comment Question: I discussed a salary reduction for an employee instead of laying him off and he is asking lot of questions even though I explained the state of business as we are in client based contract business and have none at this point for next year. Answer: Unless you have a contractual right to reduce your employees salary or lay them off, you are not legally entitled to do so and taking such a unilateral action would be deemed a constructive dismissal. Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.