Employment Law Explained

Tag Archives: breach of contract

Riots, Looting and Unfair Dismissal

london riots 540x334 Riots, Looting and Unfair Dismissal   unfair dismissal news

Now that the riots have passed away, thanks in no small part to the rain and a lot of police, the inquests can start. And the legal proceedings.  Police cells in London are said to be full to brimming with rioters and Magistrates Courts sitting all night and all weekend to get through the numbers being prosecuted. The airwaves and news media are thick with demands for retribution against the participants, for benefits to be cut and for evictions from social housing. Last week the Evening Standard carried a front page alleging that a teaching assistant had been arrested for participating in the riots. More such stories will surely follow and whilst it would be wrong to speculate on what might happen to any one particular person, are the Employment Tribunals going to get very busy over the next few months dealing with dismissed employees, leaving aside the issue that many rioters may have been unemployed or, scarily, beneath working age.

Can an Employee be Sacked for Refusing a Paycut?

Employers are more keen these days, it seems, to make employees take a pay-cut or somehow alter the employee’s contractual terms than make staff redundant. It is cheaper, less disruptive and reduces the unpleasantness that comes with redundancy processes.

However, varying an employee’s contract of employment can be fraught with risk, as was demonstrated in Garside v Laycock & Booth UKEAT/0003/11/CEA

Mr Garside refused to take a 5% paycut when his employers decided they needed to become more profitable.  He was the only employee out of 77 to refuse. He took his claim to the ET and won, but subsequently lost on appeal.

When is an Ex-Gratia Payment a Notice Payment?

Employers: watch out. Trying to pay notice pay as an ex gratia payment could land you in trouble.

That is what happened in the case of Publicis Consultants Uk Ltd v Ms O’Farrell in a case that was heard before the Employment Appeal Tribunal last month.

The issue in dispute was the company’s description of a payment equivalent to three month’s gross salary as an “ex-gratia” payment. She was contractually entitled to three month’s notice monies but was dismissed for reason of redundancy with only four days notice.  Although she was paid the ex-gratia monies, a statutory redundancy payment and her holiday monies she sued for, amongst other claims, breach of contract.  The employer tried to say that they had effectively paid the notice monies by way of the ex-gratia.

Has the Dust Settled on the Ash Cloud?

ash cloud 1637785c Has the Dust Settled on the Ash Cloud?   news employment policies

It's the one in Iceland, I can't spell it either

Now that the drama of the election is over and the novelty of the Coalition government is fading and before the whole country shuts down for the World Cup, it’s time for a brief reminder of the event that brought Europe to a standstill, Kenyan flower growers to the brink of bankruptcy and led to people having extended holidays all over the world.  Yes: the eruption of the Eyjafjallajökull  volcano (it’s only marginally easier to spell than to pronounce), which won’t quite go away (although The  Guardian reported on 23rd May that it may now be dormant) and which caused almost as much pain to news broadcasters as to those stranded in airport departure lounges.

Kevin Keegan beats Newcastle United

Kevin Keegan Kevin Keegan beats Newcastle United   unfair dismissal news miscellaneous stuff constructive dismissal

 

 

 

Kevin Keegan has won his case for constructive dismissal against former employers Newcastle United, being awarded £2mn by the Premier League’s Manager’s Arbitration Tribunal.  He left the club in September 2008 after falling out with them over the purchase of a player Ignacio Gonzalez (who?) against his wishes. 

BA is in the news again …

BA has been in the news … again and, as usual, for all the wrong reasons. The company formerly claiming to be the world’s favourite airline has now asked 40,000 of its staff to not just take a pay cut but to work for nothing for a month to ensure the company’s survival.  Now there’s an enticing offer … not.

More on Redundancy v Pay Cuts

 More on Redundancy v Pay Cuts   redundancy or pay cuts redundancy

I posted on this subject a while ago and it has received such a lot of visits I thought I better give my public more of what they want. It also gives me an opportunity to provide an update on the poll I set up below on this issue. At the moment 57% of respondents would elect a pay cut and 31% would take redundancy.  The remaining 11% didn’t know.   Whether those results will change after this post wil be interesting to see.

Redundancy or Pay Cut?

Not an enviable choice to be faced with, but one that an increasing number of people seem to be having to make, or have foisted upon them, in industry.  It is a practice that doesn’t seem to have caught on here in the City where swingeing headcount cuts still rule supreme when an employer wants to cut costs.  I’ve written many times in this blog before about the redundancy process and selection criteria and the claims that can arise when employers get it wrong.  However, what must an employer do if they decide that a pay reduction is preferable to a cull?