The engineering contractor protesting against Microsoft's 10 per cent pay cut has accepted terms to return to work.

Phil Palios has blogged he's accepted the amended contract with his employer Volt following meetings with the company. In a lengthy post, Palios said that he'd realized he can continue working at Microsoft as a result of the cut, instead of simply getting laid off, and that Microsoft's ability to pay has been hit by the recession.

Twenty-three-year old Palios said he didn't want to be come a labor organizer and give up working in software. He'd been overwhelmed with questions from supporters and the media over what moves he'd be making next in the protest.

The software engineer shot to fame this week when he called on 200 fellow contractors to protest against the pay cuts. Just 30 showed up, though. Palios said his initially strong emotions began to fade and he began to see the issue "in a more objective light" after this.

It's likely Microsoft will have taken a dim view of his use of the company's email system to drum up support for the protest in the first place. Palios had contacted the 200 through Microsoft's Global Address list. ®

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