The employer in this case wanted to make a blanket variation to its workforce's contractual notice periods. However, the employer got itself into the difficult position of varying the claimant's notice period, while the rest of the workforce refused the change.
The Employment Appeal Tribunal has held that, when considering whether or not a dismissal for refusing to take a pay cut was fair for "some other substantial reason", the employment tribunal should look at the reasonableness of the employer's decision to dismiss, not whether or not the employee was reasonable in refusing the reduction in wages.
This case is a reminder to employers of the dangers of making fundamental changes to an employee's job when attempting to cut costs during a business downturn.
The industrial tribunal in Northern Ireland has awarded over £40,000 for unfair dismissal to an employee who resigned after his employer breached his contract of employment on numerous occasions.
In Bateman and others v Asda Stores Ltd EAT/0221/09, the EAT held that the employer was entitled to change its employees' pay arrangements without their consent because it had reserved a clear contractual right to make unilateral variations to their terms and conditions of employment.
In Regent Security Services Ltd v Power [2007] EWCA Civ 1188 CA, the Court of Appeal held that an employee transferred under the 1981 TUPE Regulations could choose to enforce new, more beneficial terms agreed with the transferee, even where the variation was connected with the transfer.
In Wetherill & Ors v Birmingham City Council [2007] EWCA Civ 599 the Court of Appeal held that a local authority was entitled to vary a car allowance scheme unilaterally, but was in breach of contract by failing to provide adequate transitional protection for affected employees.
In Candler v ICL Systems Services IDS Brief 562 EAT, the Employment Appeal Tribunal held that, although scheduled telephone standby duties could be terminated by giving four weeks' notice, the only power to vary them was the general power to vary, which required 26 weeks' notice.