Employment Law Unfair Dismissal - Employer Succeeded in Changing Terms of Employment
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Employment Law: Employer Successfully Changes Terms of Employment
Summary:
Positive news for employers seeking to modify employment terms, though caution is advised.
In the case of Scott & Co v Richardson [2005], Mr. Richardson, employed by a Scottish debt collection firm, resisted new employment terms requiring evening visits to defaulting debtors. He was open to evening work only if it included overtime payments, as before. Despite seven months of negotiation, Mr. Richardson stood firm, ultimately demanding either his employer's acceptance of his conditions or dismissal. Scott & Co opted for dismissal.
Details:
Initially, Scott & Co argued that the changes were necessary to align with market practices and optimize work planning. Mr. Richardson countered, claiming the changes aimed to reduce overtime costs without clear benefits. The Employment Tribunal sided with Mr. Richardson, stating that the shift system did not offer enough advantage to justify his dismissal if he disagreed with the new terms.
However, on appeal, the Employment Appeal Tribunal (EAT) overturned this decision, stating:
- Tribunals should not question an employer’s business decisions.
- They should assess if the dismissal was based on the employer's reasonable belief in the advantages of contract changes.
- Employers need not prove these advantages objectively exist.
This ruling reassures employers that tribunals should respect their commercial decisions when determining fair dismissal reasons. However, another EAT case, Forshaw and others v Archcraft Limited [2005], cautions that while tribunals typically respect management decisions, dismissals based on trivial or whimsical reasons are considered unfair.
Commentary:
Employers can make employment term changes if they are backed by solid commercial reasons. Always exercise care and seek specialist legal advice for specific situations.
For more information, contact us at: enquiries@rtcoopers.com
Disclaimer:
This note is not a comprehensive legal statement and does not constitute legal advice. Always seek specific legal guidance for individual circumstances. RT COOPERS, 2005.
You can find the original non-AI version of this article here: Employment Law Unfair Dismissal - Employer Succeeded in Changing Terms of Employment.
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