HELP! I've been told to sign a new contract or be sacked! Big changes to pay etc

carlcumbria

Hello all,

I've been an employee for a year or so working for a local home improvements firm as a door-to-door marketer/ canvasser...I know you'll all slate me for doing that kind of job but let's put that aside for now please (you can call me all-sorts after you've hopefully gave an opinion on the reason for the thread ).

Basically to justify our basic pay we've been told, over the last year and since I started working there, that we needed to achive a target of sales per month, however now we've all been told that we have to get a target that is literally 25% EXTRA per month, or we lose £150 a week off our basic wage, and if we don't agree to sign a new contract agreeing to this we're getting sacked!

For a job, we basically take names from customers (usually from around a job that we'll be fitting) and a rep goes around to quote/ sell them any goods they've expressed and interest in, so to a large degree the sales themselves aren't done by us. This being the case the boss has said that we can also work it out instead going the by the amount of leads (names/ addresses) taken as opposed to sales but our target to achieve those is also up by nearly 50% from when I joined the firm last year. It's a case of either get more leads, or more business, for the same amount of wages or lose £150 per week. So all in all he's starting to take the p*ss!

Now, what I'd like to know is if that's legal and enforceable and if he does sack me for refusing to sign it if I'd have a legal case to argue.

I started work there a year ago, but left for a couple of weeks before rejoining last Novermber. I/ we've NEVER had a contract with them as a company, they are a limited business and we are through the books as opposed to self-employed, and the employer pays our taxes for us and NI etc, so all completely legit.

I should mention that there are and have been over the years, a lot of con-merchant guys running these kind of nationwide businesses, but I can categorically say that as a company they are very good at fitting etc and honourable to their customers, and usually to us employee's. We don't over charge for work and never make anyone pay any kind of deposit or monies in advance before the work is complete and satisfactory.
It's just lately they're trying to make us do more work for the same money. It will literally takes us more hours per day to qualify for either the leads we take or the sales we make, for no extra money and a risk of losing £150 per week if we don't..and if we don't sign we're sacked. Surely that can't be right can it?

Let me know what your opinions are on signing the contract. Can I sign it saying "signed under duress" or should I just point blank refuse to sign and call his bluff?

Thanks for any replies, Carl

KiKi

You say you've worked there a 'year or so'. Critically, have you worked there for more than 365 days or not?

ETA - just seen that you re-started last November. Was this a break in your continuous employment, ie, you've only been working there this time for 4 months?

KiKi

chalkie99

I started work there a year ago, but left for a couple of weeks before rejoining last Novermber.

So really, your current job started Nov 2010?

KiKi

Okay, you may not come back to this thread for a while so I'll give you my opinion anyway! Please note that I am not a legal eagle on this, and so a legal perspective on what really happens in practice from one of the employment lawyers / solicitors on here might be useful. This is just from my experience:

They can and are allowed to change the targets required that you need to meet, and can sack you for failing to meet targets which are achievable and sensible. However, whilst you may lose commission for not achieving those targets, to change your *basic* wage for doing the job, I would suggest is a breach of contract. £600 a month is a significant change. This is even worse if it were to take you under the NMW - does it?

The fact that you have no signed contract is irrelevant...by turning up to work and receiving wages a contract is implied. However, they (by law) should have given you a written statement of particulars in your first couple of months, outlining basics such as pay, holidays, working hours etc. Do you have this? If not you are in a stronger position, as long as you can prove your basic pay has been consistent (payslips).

You could claim breach of contract, although I recommend you get a legal perspective on that. However. The problem you may find is that you have less than 12 months' service, meaning you have almost no recourse to the law for unfair dismissal. This means that if you refuse to sign - with legal backing for breach of contract - and they sack you, they could claim that they've sacked you for a whole other reason, and you would have little recourse to the law for unfair dismissal.

For example, you refuse, and they sack on the grounds that they no longer require your services. They don't have to give you any other reason, and you would need to prove that it was because you refused to sign the contract rather than the reason they've given you. It's your word against theirs, although if all the staff feel the same you will be in a better position.

ETA - if you make 'noises' about not wanting to sign they may sack you as explained above for an entirely different reason. If they enforce the contract on you (even if you don't sign it they may enforce it), then you have a stronger case for breach of contract (assuming that a solicitor agrees that it constitutes BOC). I guess what I'm saying is that talking about it with them upfront may not actually benefit you, in case they decide to get rid of you before it's a legal problem for them.

As I said, this is from my experience, not a legal perspective of how things happen in reality, so I suggest you seek an employment lawyer's advice, or call ACAS.

HTH
KiKi

carlcumbria

Wow, thanks for the speedy replies.

After leaving for 2 weeks I rejoined the firm November 2010.

I work there in variable shifts/ times, but the total is approx' 25-30 hours per week.

I have pay slips from every month on them and my basic pay is listed as being "salary", with the commisions listed seperately.
I've got proof of everything in terms of work that I've done for the company if that means anything.

Let me know if that changes anything if you don't mind guys. Thanks again for taking the time out of your weekend to give your opinions. I'm collecting the contract to look through later today however we have to have it signed and returned by Tuesday or bye bye time

Mudd14

The contract they are asking you to sign, what does your start date and continous date of employment state?

They can impose the chnages of contract by sacking you and remploying under the new conditions if you refuse to accept the initial variation but it is risky and open to unfair dismissal claims, however if you have under one years service there can be no claim for this.

KiKi

If you have evidence of your basic salary, then you need to:

a) see if £600 deductions take you below minimum wage (unlawful)
b) call ACAS / employment solicitor and check that this could be breach of contract (a significant change in pay or conditions can mean BOC; I think this is significant)
c) decide what to do

You can refuse to sign, but really need to get it in writing that you've been sacked for not signing the contract. Assuming that ACAS /solicitor agree it's BOC then you could have a case for ET.

Or, you can sign under duress, put in writing that you're not happy, let them enforce the contract then claim BOC (again, assuming ACAS / solicitors agree).

HTH - you MUST call ACAS or a solicitor on Monday. Most sols will give you 30 mins free. Don't delay, you don't have time on your side here.
KiKi

KiKi

Mudd14 wrote: »

however if you have under one years service there can be no claim for this.

...but there can be a claim for breach of contract for which a substantial change in base salary qualifies. I reckon £600 a MONTH would qualify...what do you think?

KiKi

Mudd14

KiKi wrote: »

...but there can be a claim for breach of contract for which a substantial change in base salary qualifies. I reckon £600 a MONTH would qualify...what do you think?

KiKi

Yes but the employee would need to leave not be dismissed for this to happen? If they follow a procedure for the dismissal, pay/allow for the notice period and offer the new terms after termination where is the breach of contract?

getmore4less

What's the basic wage currently.

£150 deduction with no context is a bit meaningless.

KiKi

Mudd14 wrote: »

Yes but the employee would need to leave not be dismissed for this to happen? If they follow a procedure for the dismissal, pay/allow for the notice period and offer the new terms after termination where is the breach of contract?

Yes, that was my point in my second post - the employee would need to have the contract in place to claim BOC, or prove that he was sacked for refusing to sign it, but that's very difficult to do (because he couldn't bring it through unfair dismissal).

Hence it's better to accept under duress and claim BOC, than be sacked (I would have thought!).

KiKi