Good News for Employers wishing to change the terms of employment of employees, however, employers must still take care.
In Scott & Co v Richardson [2005], the Dependant, Mr Richardson, who worked for a Scottish firm of debt collectors, refused to accept his new terms of employment which required him to visit defaulting debtors during the evenings. Mr Richardson agreed to work evenings but only if this would continue to attract overtime payments as had previously been the case. Scott & Co tried for seven months to persuade Mr Richardson to change his mind but he refused, finally issuing an ultimatum that his employer should either accept his position or dismiss him. They chose to dismiss him.
At first instance, Scott & Co claimed that the change in working conditions was required to bring the company into line with new market practices and to allow them to plan work more cheaply and effectively. Mr Richardson argued that Scott & Co had failed to prove that there were advantages to the new working arrangements and that the real reason for the changes was to save money in overtime payments.
Mr Richardson succeeded in his claim for unfair dismissal and the Employment Tribunal held that it did not appear that the imposition of the shift system was of such discernible advantage that the only reasonable thing to do was to terminate the employee's contract unless he would agree to the new arrangement.
On appeal the EAT overturned this decision and held that:-
A Tribunal should not 'second guess' an employer's business decision; A Tribunal should evaluate whether dismissal was due to the employer's reasonable belief that the contract changes had advantages; and The employer did not need to prove that those advantages objectively exist. This is good news for employers who can rely on the principle that the tribunal must respect their commercial decisions in assessing whether a fair reason for dismissal has been shown. However this must be tempered by another EAT decision in Forshaw and others v Archcraft Limited [2005], where the EAT relied on its own assessment that the clause in question was unreasonable and found that the dismissal was unfair. In Forshaw the EAT said that while the tribunal generally will not re-open the commercial decisions of an employer's management, however, a reason which is genuinely held but is trivial or unworthy or whimsical will mean that the dismissal is unfair.
Comment: Provided that care is taken, changes to employment terms which are supported by sound commercial reasons will be acceptable under the law. If you require further information contact us.
Email: enquiries@rtcoopers.com
© RT COOPERS, 2005. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.
Employment solicitors, employment law, employment lawyers, employment law firm, redundancies, unfair dismissals, breach of contract, workplace disputes, TUPE Transfers, drafting employment contracts, grievance procedures, disciplinary procedures, maternity rights,discrimination, employment Disputes, suspensions, wrongful dismissal,equal pay, media copyright.
Contact us at enquiries@rtcoopers.com or visit our website at http://www.rtcoopers.com
Q. I'm looking for a new job and plan to... Read More
If you have ever experienced any of the following, you... Read More
Unless you are among the luckiest people in the world,... Read More
Your resume (or curriculum vitae), combined with the cover letter,... Read More
Follow these quick and easy tips to build yourself a... Read More
Looking for a job involves a wide range of responsibilities:... Read More
We all have career goals, big or small. Here are... Read More
Anyone who is a jobseeker knows that looking for a... Read More
Have you ever heard of liquid air? The process of... Read More
Building and expanding a business is a difficult task, when... Read More
As a human resources professional or business owner, you face... Read More
The message came from Human Resources. There's nothing to worry... Read More
Question: How do I market myself online?Answer: With a stellar... Read More
"If you always do what you've always done, you will... Read More
Hank Bochenski's story proves it is never too late to... Read More
I've watched a few episodes of Nanny 911 and with... Read More
These days, interviews don't come easily. When you get The... Read More
Writing a cover letter to send with your résumé can... Read More
I manage a website for corporate flight attendants that features... Read More
Dealing with tough questions and objections is an essential part... Read More
The job search secret that is so powerful it will... Read More
I am in my mid-thirties, and, as you can imagine,... Read More
I always look forward to the December issue of... Read More
All Presidential candidates (before and after) make all kinds of... Read More
You're pretty comfortable using the phone. It's something you do... Read More
A resume is normally the first contact point between an... Read More
More than ever, employers want employees who can produce results!... Read More
I'll be the first to admit that I hated my... Read More
1. Define Success for YourselfClarify and write down what success... Read More
Your resume needs to outline your skills and experience, as... Read More
How many people do you know who think they deserve... Read More
The old adages: "It's not what you know, but who... Read More
According to statistics one out of every five pregnant women... Read More
Are free resume templates a viable answer to preparing a... Read More
Résumé TipsSome basics about job hunting...First of all, nobody owes... Read More
Employment finally seemed back on track during the first few... Read More
Q. "I wasn't happy with my last performance review. Should... Read More
To succeed in today's global marketplace, companies must hire the... Read More
There are several ways to work from home. Some of... Read More
Last article I discussed why a telecommuter would benefit from... Read More
Yesterday I was having a discussion with Mary who I... Read More
The unemployment checks are running out and there is no... Read More
Let's face it, most of us consider professional success and... Read More
Why do you work?Stop and think about it. Other than... Read More
In today's economy, job seekers need an edge beyond their... Read More
When there is an opening to fill, a company has... Read More
Outsourcing has moved upward in the most-improved columns of efficiency... Read More
The following eight tips will help make sure that recover... Read More
There was a time when accounting was the boring college... Read More
I begin this article with a bit of slang description.... Read More
It isn't the end of the world, even if it... Read More
Actually, "the boomerang effect" is a relatively new trend of... Read More
It's your first month in a new position and it's... Read More
1. Assess ? Evaluate your skills, interests and abilities. Understand... Read More
When communication breaks down in your office or factory and... Read More
Believe it: three obstacles will hold you back from your... Read More
Doesn't every job search start with Google?Way back in another... Read More
You're nervous. You're so nervous that you crave a smoke.... Read More
Many people in the last decade have experienced for themselves... Read More
You've probably been taught not to stereotype people based on... Read More
Is it opening doors to new opportunities? Does it compel... Read More
Complacency damages your career more than lack of qualifications. The... Read More
A week out of work is a vacation. You can... Read More
There is a saying that goes, "The best offense is... Read More
Proof reading from home is an excellent way to make... Read More
REJECTION IN THE JOB SEARCHGOT YOU DOWN?It's true, no one... Read More
Careers, Jobs & Employment |