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.
Practical guidance on changing the pay method for employees, setting out how to vary the terms of the employment contract, including harmonisation following a TUPE transfer; consulting with employees; and dismissal and re-engagement.
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