Change of contract

Mudd14

_shel wrote: »

If your employer wants to change your contract they can. They can not back date it, they must give 90 days notice.

Sorry shel they only have to give resonable notice this can be anything really! Infact section 4 (3) of the ERA states that it has to be put in writing 1 month after the change has happened!!

Tojo Ralph, I suppose the only thing stopping/worrying them is they dont know if the employees who leave because of the change wont take the employer to trbunal on constructive dimissal which could cost more than the redundancy

CFC

Actually I believe that Ceridwen has hit the nail on the head. The company would find itself in an ET for Unfair Dismissal, most likely, if the person refused the pay cut.

Anyone in this situation needs to take some professional advice.

DCodd

I am in a similar situation, Your employer can not force you to accept the changes!!! They can dismiss you and then re-employ you at the lower rate if you refuse BUT you can sue for unfair dismissal.

I spoke to ACAS who said that you MIGHT even be able to resign and sue for constructive dismissal!

See this link and/or seek advice from ACAS

http://www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions/DG_10037116

getmore4less

I don't fully understand the impact but one of the issues with dismisal and the offer of reemployment does mean that the losses to the employee are potentialy limited and may effect any compensation damages.

One advantage of the illegal deduction route is that it can offer protection if upheld.

I also think in cases like this it is for the employer to prove it was not unfair dismisal if they dismiss.

I think if you can get 10 people with at least 2 years service to refuse the pay cut then that may help make this a collective situation for the dismissals if they go down that route.
If the employer fails to follow the statutary process for dismisals this helps employee cases.

DCodd

getmore4less wrote: »

I don't fully understand the impact but one of the issues with dismisal and the offer of reemployment does mean that the losses to the employee are potentialy limited and may effect any compensation damages.

One advantage of the illegal deduction route is that it can offer protection if upheld.

I also think in cases like this it is for the employer to prove it was not unfair dismisal if they dismiss.

I think if you can get 10 people with at least 2 years service to refuse the pay cut then that may help make this a collective situation for the dismissals if they go down that route.
If the employer fails to follow the statutary process for dismisals this helps employee cases.

Not sure if this is true in reality but it seems to suggest that the employer would have to show that the financial benefit for the company was enough to offset any losses or forseeable losses that the company has? I think that would be very difficult to prove and may require Directors dividends to be disclosed???????

Losses are limited under unfair dismissal anyway but would probably be Salary lost X number of months and then a requirement to reinstate the original salary and position?

Unauthorised deductions, I beleive, also helps if the Company goes bust as you can claim back from the Administrators your lost salary as a preferencial creditor. (Probably Arguable though)

EDIT - All this does depend on whether the op's contract has a provision for a short-time working week and/or salary reduction in it

rbanrban

Tojo_Ralph wrote: »

So let me get this right.

An employer wants an employee to take a 5% pay cut.
The employee does not want to or cannot afford to take a 10% pay cut.
The employee refuses to agree to the new contract.
The employee then gets dismssed?

Surely if an employee does not wish to agree to a 10% pay cut the result is redundancy not dismissal?
...

your contract of employment is your employment, its your job, if they change your contract then the job you were employed at no longer exists. so you always have the option of redundancy the 90 days notice is mainly to give you time to make the correct choice think about it, your employer gives you 90 days notice to take a pay cut then when that 90 days are up he gives you another 90 days notice and so on

SarEl

rbanrban wrote: »

your contract of employment is your employment, its your job, if they change your contract then the job you were employed at no longer exists. so you always have the option of redundancy the 90 days notice is mainly to give you time to make the correct choice think about it, your employer gives you 90 days notice to take a pay cut then when that 90 days are up he gives you another 90 days notice and so on

The thread you have replied to is nearly two years old. But your advice is also incorrect in law. Your job and your contract of employment are separate things. In this case the job still exists and the contract is being varied. This is not a redundancy in any shape or form and there is no option for redundancy. I have no idea what on earth the 90 days, then another 90 days means - it comes from no law. If someone disagrees with a contractual change then the employer serves contractual notice whatever length that is, and offers a new contract on the new terms. If the employee refuses they are deemed to have resigned. They must then prove a case of unfair dismissal.