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EAT considers test for reasonableness of dismissal for refusal to take a pay cut

This report relates to 1 case(s)

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.