Can an employer do this?

onedaymyfriend

Evening guys!

A friend of mine is working for a company, who pay him a salary. The boss has now turned to him and said that he will be earning a salary until Friday & after that his wage will be on a commission base only. The employer then said to him, we understand if you want to leave.

Surely this isn't right? He has a signed contract with no mention of commission.

Any help/info would be much appreciated as always,

D#

LittleVoice

How long has he worked there?

Have they given information about the commission payment proposals?

They could not force this change of condition. If it could be proved to be absolutely essential for the business to change, and he did not accept the new payment method then they could dismiss him. But he would be entitled to his full notice.

ceridwen

GAWD! I'm wondering if there is any possibility of him resigning and suing for constructive dismissal - as this would be such a major change - going from a guaranteed salary to no salary at all (just any commission he could get). I wouldnt even have thought there would be much in the way of commission to get in this day and age either in the current economic climate.

Wonder if this is a try-on to get him to just resign (without any mention of having them for constructive dismissal in the process) - so that they can avoid paying him redundancy pay?? Not even much notice given!!

That comment too about "we understand if you choose to leave"....hmmmm...very suspicious in my book.

I can only give my own personal viewpoint - which is that I would turn round to them and tell them I was wise to their little game - phrased a bit more tactfully than that - summat along the lines of "I can see it would suit you if I were to resign - but if you dont want me any more then you must make me redundant. If you dont - then I think I have a good case for resigning BUT suing you for constructive dismissal for having made me do this." I think they would probably backtrack pretty hastily and turn this into a redundancy. If they dont respond to your friends verbal comments - then I would personally hand them a letter stating words to this effect in writing - a copy kept as proof to the powers-that-be that my job had gone and I was entitled to benefit if need be.

I am sorry to say that I dont rate the chances of keeping the job on the normal salaried basis. Its obviously gone now - the question is on which terms and I would be making sure it was the proper redundancy terms if it were me.

Frankly - theres absolutely nothing to lose as far as I can see if the worst comes to the worst by resigning and bringing a constructive dismissal claim.

The one absolute certainty is that your friend MUST NOT agree to doing his job on a commission only basis no matter what...he will be on a hiding to nothing if he does that. I very much doubt he'd earn anything to speak of and would be living constantly with insecurity about just how much of his salary he would be able to get from that commission.

onedaymyfriend

Ok, he has worked there for just under a year.

His boss runs 2 companies (A) & (B).

My friends contract of employment is with with company (A), where he earns a salary & the commission based work is for company (B).

Can the boss swap & change what company he works for and how he earns his wage?

D#

ceridwen

I would have thought this would make the situation easier for your friend - he could just turn round presumably and say that he refuses to change company. He intends to continue working for his existing company and if his existing company has no further requirement for him then they must make him redundant.

I've been in a situation before now where I was told I was redundant and I actually asked for a similar job that I could see was available with a linked company - and they wouldnt give me that job on the grounds that it was only a linked company (not the same company). So - if I couldnt force an employer to give me a job with a linked company when I wanted it - then I cant see how an employee can be made to do a job with a linked company when he DOESNT want it.

onedaymyfriend

I didn't think that you were only entitled to redundancy pay after 2 years service?

D#

robredz

I think you have to be with a firm for two years before you could qualify for redundancy. They may be hoping your friend will sack themselves and walk away. The unreasonableness or otherwise of this fundamental unilateral change in the contract *may* form a ground for claiming constructive dismissal if they resign, as the employer is probably in breach of contract see here:

http://www.emplaw.co.uk/researchfree-redirector.aspx?StartPage=data%2f012.htm

but this head is not the easiest one under which to claim unfair dismissal imho. Others may know more

SomeBozo

onedaymyfriend wrote: »

Ok, he has worked there for just under a year.

Meaning they can sack him without giving a reason (as long as not on the gorunds of discrimination).

Probably easier to do than try and impose new salary structures IMO.

How much does your freind want the job as it stands?

Bozo

onedaymyfriend

His employment contract says that, if he wishes to leave then he must give company (A) 3 months notice & vice versa if they want to get rid of him.

Where does this leave him?

D#

robredz

He should take advice PDQ as the unilateral change is a breach on the part of the employer, and the hint about walking away may be to refute a claim for unfair dismissal citing the employees breach of contract for leaving without the contracted term of notice.

annie-c

He needs some proper advice. I can't give that as am not qualified but know that constructive dismissal is not easy to pursue unless an employee has taken the case as far as possible through the organisation's grievance process before resigning. Your friend should not make hasty decisions but should seek formal advice. Is he a Union member? Does he have access to free legal advice (this is often included on household or car inurance and applies to any legal advice, not just relating to houses and cars)?