Constructive Dismissal?

Rudess

Hello, I have a question and I hope to get some advise from people who may have experienced or heard of similar cases.

I have been working for more than 2 years in my current company and been the top performer in my team, achieving sales target every month. The company recently gone into consultation and as a result 70 jobs were cut, however I wasn't made redundant but my job title change slightly.

Today my company sent me 'confirmation' of the new bonus/commission scheme, and the result of it is that I will be worse off few hundreds of pounds on a monthly basis.

We used to have monthly commission which I've always earned in full but now under their 'new' scheme, we will get a rise to the basic salary by a certain percentage and the rest will be an annual bonus at their discretion.

Problems are:
a. My monthly pay will be few hundreds of pounds less
b. although they present it like annual bonus can be more, the reality is that in the last 2 years I haven't paid my annual bonus in full because the company decided to pay just a portion (this was a contract breach). Since I was 'burned' already twice, I can't take the risk that it will happen again.

I do know the company tries to cut down costs, however I don't think I should accept an effectively pay-cut, since I used to perform well. Even if my basic is higher, I will still be worse off month-on-month although the overall basic and commission are like before. Knowing that the company didn't pay previously the full annual bonus as required, I think they increased the percentage of it, in order to pay less.

Given this, will this be considered as constructive dismissal?

Proc

Bonuses are generally discretionary - this will be stated in your contract

You can't claim constructive dismissal unless you resign. Although it gets deeper than that. It could be classed as bullying only if the changes applied to you and only you and your colleagues weren't affected. Bullying can lead claim to constructive dismissal but this isn't the case as it sounds like company-wide changes so certainly isn't bullying

I'd suggest checking your contract - if it says bonuses are discretionary you're pretty much stuck as you are

Rudess

Proc wrote: »

Bonuses are generally discretionary - this will be stated in your contract

You can't claim constructive dismissal unless you resign. Although it gets deeper than that. It could be classed as bullying only if the changes applied to you and only you and your colleagues weren't affected. Bullying can lead claim to constructive dismissal but this isn't the case as it sounds like company-wide changes so certainly isn't bullying

I'd suggest checking your contract - if it says bonuses are discretionary you're pretty much stuck as you are

In my job offer my basic is stated and also that I have OTE which is On Target Earning, meaning commission based on my performance, not the company's.

The issue here that while even now the new basic + 'annual bonus' will be the exact amount in theory, I will effectively earn less because:

a. I won't have anymore the monthly commission element and despite that some of the monthly commission is added to the new basic, I will still be worse off.
b. my company hasn't paid previously what I was due in the annual bonus, and now when they increase the percentage for the annual bonus, meaning putting more money at risk of not paying, based on the past.

While the company tries to save money, I don't think I should accept earning less on a monthly basis + knowing that annually I will earn less because I know that I won't be paid the majority of the 'annual' bonus regardless of how well I will do.

whitewing

I guess there could be 70 people who would prefer their jobs with a slight pay cut.

It is not fair. However, in my experience, there will be very little that you can productively do about it unless perhaps you find another job.

Rudess

whitewing wrote: »

I guess there could be 70 people who would prefer their jobs with a slight pay cut.

It is not fair. However, in my experience, there will be very little that you can productively do about it unless perhaps you find another job.

Yes new job is definitely the solution as it seems.

getmore4less

if you don't trust the annual bonus take the basic pay rise and don't try so hard.


be on the next round of redundancies