EAT considers test for reasonableness of dismissal for refusal to take a pay cut
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Garside and Laycock Ltd v Booth [2011] IRLR 735 EAT (0 other reports)
This ruling reaffirmed another EAT decision on the reasonableness of dismissal for an employee's refusal to agree to a proposed detrimental variation in contractual terms for business reasons, Catamaran Cruisers Ltd v Williams and others [1994] IRLR 386 EAT.
unfair dismissal | employer's financial difficulties | pay cut
The Employment Appeal Tribunal (EAT) 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.
