An industrial tribunal's decision that an employee could reasonably refuse a proposed detrimental variation in contractual terms because it was not based on sound business reasons vital for the company's survival was wrong, holds the EAT in Catamaran Cruisers Ltd v Williams and others.
In Evans v Elemeta Holdings Ltd [1982] IRLR 143 EAT, the EAT emphasises that whether it is reasonable to dismiss an employee for refusing to accept a change in contractual terms depends upon whether it was reasonable for the employee to decline the terms. If it was reasonable for the employee to decline those terms, then it is unreasonable for the employer to dismiss the employee for such refusal.
In Genower v Ealing, Hammersmith & Hounslow Area Health Authority [1980] IRLR 297 EAT, the EAT held that the attempt by the respondent employers to change the appellant's job duties and place of work following a reorganisation, albeit a breach of contract which justified him in resigning and claiming that he had been dismissed within the meaning of the Employment Protection (Consolidation) Act, section 55(2)(c), was a dismissal for some other substantial reason and was reasonable in all the circumstances.
The Court of Appeal held, in Hollister v National Farmers' Union, that Mr Hollister's dismissal for refusing to accept the terms of a re-organisation amounted to some other substantial reason for dismissal. And in Banerjee v City & East London AHA, the EAT overturned an Industrial Tribunal's decision that Mr Banerjee's dismissal from his post of part-time consultant surgeon following a decision to replace part-timers with full-timers was for some other substantial reason.
In RS Components Ltd v RE Irwin [1973] IRLR 239 NIRC, the National Industrial Relations Court held that it was reasonable to terminate the employment of an employee who refused to sign a covenant restricting him operating in competition with the company for one year after leaving the company's employment.