Leaving a job is a breach of a "permanent" contract...

124

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  • Manxman_in_exile
    Manxman_in_exile Posts: 8,380 Forumite
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    edited 5 January 2018 at 8:57PM
    Hi everyone

    I feel the expectation of an employer to honour a permanent contract eternally (As other posters have pointed out, your opening point is wholly mistaken - there is no such thing as a permanent contract. Is it necessary to continue? Let's assume it is.) but not the employee is wrong in law (It can't be wrong in law as that is what the law is. What point are you trying to make?). If you were to leave a phone contract prematurely you'd have to buy it out, (because that is what the T&Cs you agreed to, say, but employment law is different!) why do we not have the same with employment too? The employer should be able to sue the employee the value of the work they're nolonger providing, for as long as the contract would otherwise apply (I.e. in perpetuity) As explained above, no contract can apply in perpetuity. What happens when one of the parties die? Do the employees children have to start working for their deceased parent's employer? And if the employer died, they'd have to keep paying their employees?).

    This would increase the supply of labour which would help keep wages (What about price inflation?) and conditions under control, which would ultimately help everybody's investments (Neither I nor my wife have any anything other than trivial investments amounting to about £100 dividends pa. Are you bonkers?). With this change employers wouldn't be forced to increase wages unless it was stipulated in contract


    As, from some of your other posts, you are desprate to raise a loan on a 13 yr old car and seem to be bit worried(?) about finding another job if necessary, why are you posting this rubbish?


    EDIT: You also don't seem to know what the law is or what "legality" means. I would respectively suggest that you (1) do not raise questions about subjects you seem to know little about and, (2) don't tell me you've been looking at FMotL sites, please...
  • System
    System Posts: 178,093 Community Admin
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    Manxman -
    .
    As, from some of your other posts, you are desprate to raise a loan on a 13 yr old car and seem to be bit worried(?) about finding another job if necessary, why are you posting this rubbish?

    Not desperate, just opportunistic. Not worried, just prepared and responsible with my aggressive investment strategy
    .EDIT: You also don't seem to know what the law is or what "legality" means. I would respectively suggest that you (1) do not raise questions about subjects you seem to know little about and, (2) don't tell me you've been looking at FMotL sites, please...

    Raising questions is how you learn knowledge, I'm not ashamed to not know and ask, or have a contrarian view to test
    What is fmotl out of interest?
    . As explained above, no contract can apply in perpetuity. What happens when one of the parties die? Do the employees children have to start working for their deceased parent's employer? And if the employer died, they'd have to keep paying their employees?).

    Does anything actually say that contracts can't continue in perpetuity? An employee seems to have a right to keep the job in perpetuity, at least until death anyway
    I think some contracts do get inherited, or the debt could be levied against the estate until the estate goes bankrupt
    .What about price inflation?

    Inflation in this case will benefit the employer as a real wages cut year on year
    . (Neither I nor my wife have any anything other than trivial investments amounting to about £100 dividends pa. Are you bonkers?).

    1 - I advise you put more into a diversified passive fund at a risk level you can tolerate
    2 - do you have a pension? If it's defined contribution, it's invested
  • theoretica
    theoretica Posts: 12,297 Forumite
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    edited 5 January 2018 at 10:02PM

    Elsien - if employer and employee had equal rights, the employee could fire the employer for breach of contract/misconduct and could make them redundant if they could prove they had an alternative income or didn't need the money. It's just making it equal for both sides

    An alternative income? Such as another job? And failing that all an employee needs to do is work so badly or so little they get sacked?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • System
    System Posts: 178,093 Community Admin
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    Theoretica - yes job offer, or pension income, or to demonstrate that they don't need the money - however you could say that finding another job wouldn't count as the employer being redundant if you can't simply replace employees that way

    Having to sack employees doing badly will be bad for business, so maybe underperformance could be treated as theft/defaulting on the contract and in theory could be sued/prosecuted for that
  • theoretica
    theoretica Posts: 12,297 Forumite
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    Theoretica - yes job offer, or pension income, or to demonstrate that they don't need the money - however you could say that finding another job wouldn't count as the employer being redundant if you can't simply replace employees that way

    But an employer can make one role redundant, and employ (or not) in another one. So to be equal, an employee could declare they no longer wanted an employer of one role and go seeking another a bit different.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • System
    System Posts: 178,093 Community Admin
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    Indeed, they therefore couldn't take the same role elsewhere in a sideways move
  • Manxman -

    Not desperate, just opportunistic. Not worried, just prepared and responsible with my aggressive investment strategy Good luck with that aggressive strategy - you may need it.



    Raising questions is how you learn knowledge, I'm not ashamed to not know and ask, or have a contrarian view to test I think asking questions in areas of ignorance is a good way of improving one's knowledge - so is taking a sceptical POV. But if you refuse to accept what others tell you, it seems a bit pointless asking the question in the first place. In your OP you seemed to be under the entirely mistaken misapprehension that something called "permanent" employment contracts exist under English and Welsh law. As other multiple posters have told you, there simply is no such thing - so wanting to "debate" their "legality" is completely futile (unless you are a Law Lord in the Supreme Court).

    What is fmotl out of interest? I thought you may have been a follower of a bunch of delusionals who believe that statute law does not apply to them (unless they've "contracted in") and that the only "real" law is common law. I was probably mistaken in your case.



    Does anything actually say that contracts can't continue in perpetuity? An employee seems to have a right to keep the job in perpetuity, at least until death anyway The law says so.

    I think some contracts do get inherited, or the debt could be levied against the estate until the estate goes bankrupt How can contracts or debts be inherited? They can't, but lawful debts can be recovered against a deceased's estate. But the debts you are discussing aren't lawful because...they aren't lawful.



    Inflation in this case will benefit the employer as a real wages cut year on year Well I've always been an employee so I'm not impressed by this argument!



    1 - I advise you put more into a diversified passive fund at a risk level you can tolerate I have no desire whatsoever to follow your ill-informed advice.

    2 - do you have a pension? If it's defined contribution, it's invested My wife and I don't have defined contribution pensions. We are entirely content with the pensions (and other assets) we have, thank you.


    I still don't understand the point of your OP.
  • Comms - working backwards, if my fund keeps doubling every 5 years...

    5 years before 1m I need 500k
    10 years before I need 250k
    15 years before need 125k
    20 years before I need 62.5k
    25 years before I need 31.25k
    30 years before I need just less than 16k
    35 years before I need 8k - that's where I'm at

    That's if I make no extra contributions (although I will) - behold the power of compounding
    And I'm young enough

    Google Vanguard global small cap...


    By "fund" I assume you mean pension fund and not savings? I've probably had too many vodkas, but the back of my fag packet suggests you are assuming around 15% pa growth excluding the effects of inflation over a period of 35 years(!) Really? I can remember at one point when I was at university inflation was running at about 26% pa and investments were not doing 15% better than that. Have you had advice from an Independent Financial Advisor about this assumption? That's what I'd want and I'd be willing to pay for it.


    You want to be a millionaire in 35 years time - but what does that mean? Calculating what size of fund might be needed to pay my and my wife's defined benefit pensions, plus the assets we own, we are not far short of that now - let alone in 35 years time when inflation plus house price inflation will probably mean at least half of the population will be "millionaires" - whatever that means...
  • WobblyDog
    WobblyDog Posts: 512 Forumite
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    The employer should be able to sue the employee the value of the work they're nolonger providing, for as long as the contract would otherwise apply (I.e. in perpetuity).

    I think this would be a bad idea, if only because it would encourage employers to assume that key staff would always be available, and were at no risk of getting sick or run over by a bus.

    Three month notice periods are quite common. If an employer can't train-up an existing member of staff to do the departing employee's job in that time, then the employer hasn't planned ahead sufficiently well.
  • System
    System Posts: 178,093 Community Admin
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    Manxman -
    By "fund" I assume you mean pension fund and not savings? I've probably had too many vodkas, but the back of my fag packet suggests you are assuming around 15% pa growth excluding the effects of inflation over a period of 35 years(!) Really? I can remember at one point when I was at university inflation was running at about 26% pa and investments were not doing 15% better than that. Have you had advice from an Independent Financial Advisor about this assumption? That's what I'd want and I'd be willing to pay for it.

    Pension/ s&s isa yes (guaranteed? no, but its a good length of time to achieve the historical average)

    15% growth - that is my assumpion, as global small cap has been doing the last 15 or so years that I can see when I google the msci global small cap index. The fees from account and platform are a small downer on that however and admittedly the historical average for small cap over 100 years is only 12% I'm told, so it may take a couple of years more/ a bit of contribution, but "a million" still reality.

    I haven't factored in inflation because I'm not claiming I'd have a real terms million by then, just the number of a million to make the point that that is possible. Even my house if it compounds at 5% will value over a million in my lifetime, and I have a db pension like you do too, but unless you can/will cash that out there doedsnt seem much sense in assigning it its value in bonds (x30) when most people wouldn't live 30 years after state pension age

    Ultimately I can't do much more about inflation than I'm already doing - the equities will be the companies raising their prices however and I intend to let the mortgage drag out to let that inflate away

    And 5 years on from that numerical million I ought to have something more like a real terms million

    Some of the people on here are financial advisors, so I've had unofficial, free, advice - but because of the monevator blog I do see financial advisors as... Not our best friends...as they push expensive active funds when indexing usually does better

    A contract that can be inherited, or sold, would be leasehold for example, something of value
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