Forced to sign new contract for lower pay - or leave.

Forced to sign new contract for lower pay - or leave.

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Discussion

55palfers

5,908 posts

164 months

Tuesday 13th September 2016
quotequote all
hacksaw said:
timbo999 said:
Close but no cigar... £479 is the MAXIMUM payment per year of service not the minimum (there isn't a minimum) - you get a weeks pay for each year of service up to a maximum of £479 for each year. However that's the statutory amount and the employees contract may give them more.
Close but no cigar,

half a week’s pay for each full year you were under 22
one week’s pay for each full year you were 22 or older, but under 41
one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.
At their £28K p.a. the weekly rate is £540 ish so the £479 is correct.


4x4Tyke

6,506 posts

132 months

Tuesday 13th September 2016
quotequote all
There is a third choice, reject the new contract. There is nothing to force your friend and their colleagues to accept it. The existing contract stands. No doubt the usual suspects will be along shortly to tell you employers can and should be able to do what they want.

timbo999

1,293 posts

255 months

Wednesday 14th September 2016
quotequote all
hacksaw said:
Close but no cigar,

half a week’s pay for each full year you were under 22
one week’s pay for each full year you were 22 or older, but under 41
one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.
The cigar is all yours... I agree I oversimplified, the point I was keen to make is that statutory payments are capped (both in terms of the weekly amount and the number of qualifying years as you rightly point out) and that there is no 'minimum' as such.

Let's hope the people concerned have contracted redundancy terms!

mike9009

6,999 posts

243 months

Wednesday 14th September 2016
quotequote all
Financially would it not be better to get dismissed hen go to an employment tribunal, claim compo for constructive dismissal and redundancy payment.

Obviously I would seek legal advice before taking this course of action. Do Not hand in resignation, wait for dismissal.

anonymous-user

Original Poster:

54 months

Wednesday 14th September 2016
quotequote all
The devil is in the detail, but yes an employer can dismiss and re-engage on lower terms, those that do not chose to take the new contract can be dismissed without compensation.

For the employer to be able to do this they must

1.) Have followed a fair process of consultation to attempt to reach prior agreement to the changes, exhausting other options, and
2.) Show they have dismissed fairly. In most cases this will rely on 'Some other substantial reason' (SOSR), by showing a real/compelling business case/financial pressure. This pressure would not need to be as drastic as liquidation though

Historically tribunals have been relatively sympathetic to companies in their 'SOSR' justifications.

However key points a Tribunal would want answered if the reason is cost based are
- Non-employee cost reductions having been sought or made, eg suppliers
- That the burden of reduction is not unequal eg management also have a reduction in pay

Breadvan of this parish would give a much better review if he was around.

As always your friend should seek professional advice from a competent employment lawyer, not from random car geeks

anonymous-user

Original Poster:

54 months

Wednesday 14th September 2016
quotequote all
wsurfa said:
The devil is in the detail, but yes an employer can dismiss and re-engage on lower terms, those that do not chose to take the new contract can be dismissed without compensation.

For the employer to be able to do this they must

1.) Have followed a fair process of consultation to attempt to reach prior agreement to the changes, exhausting other options, and
2.) Show they have dismissed fairly. In most cases this will rely on 'Some other substantial reason' (SOSR), by showing a real/compelling business case/financial pressure. This pressure would not need to be as drastic as liquidation though

Historically tribunals have been relatively sympathetic to companies in their 'SOSR' justifications.

However key points a Tribunal would want answered if the reason is cost based are
- Non-employee cost reductions having been sought or made, eg suppliers
- That the burden of reduction is not unequal eg management also have a reduction in pay

Breadvan of this parish would give a much better review if he was around.

As always your friend should seek professional advice from a competent employment lawyer, not from random car geeks
Interesting. I did not know this.



FGB

312 posts

92 months

Wednesday 14th September 2016
quotequote all
NinjaPower said:
They have been told they can either sign the new contract for less money or resign.
Alternatively She could tell them that's not how it works and they should go fk themselves !

Tell your friend to get a lawyer / Citizen's Advice and take it from there !

anonymous-user

Original Poster:

54 months

Wednesday 14th September 2016
quotequote all
FGB said:
Alternatively She could tell them that's not how it works and they should go fk themselves !

Tell your friend to get a lawyer / Citizen's Advice and take it from there !
Unfortunately, if the employer has followed the correct process, they can.


A few years ago one of the local council dismissed its entire workforce and re-engaged them on about a 5% cut

FGB

312 posts

92 months

Wednesday 14th September 2016
quotequote all
wsurfa said:
FGB said:
Alternatively She could tell them that's not how it works and they should go fk themselves !

Tell your friend to get a lawyer / Citizen's Advice and take it from there !
Unfortunately, if the employer has followed the correct process, they can.


A few years ago one of the local council dismissed its entire workforce and re-engaged them on about a 5% cut
http://www.telegraph.co.uk/finance/personalfinance/5836105/Take-a-pay-cut-or-a-P45-what-are-your-rights.html

As I said get a lawyer / advice from a professional.

anonymous-user

Original Poster:

54 months

Wednesday 14th September 2016
quotequote all
FGB said:
wsurfa said:
FGB said:
Alternatively She could tell them that's not how it works and they should go fk themselves !

Tell your friend to get a lawyer / Citizen's Advice and take it from there !
Unfortunately, if the employer has followed the correct process, they can.


A few years ago one of the local council dismissed its entire workforce and re-engaged them on about a 5% cut
http://www.telegraph.co.uk/finance/personalfinance/5836105/Take-a-pay-cut-or-a-P45-what-are-your-rights.html

As I said get a lawyer / advice from a professional.
Agree they should get advice from a specialist employment lawyer, however he/she will explain employers can do what I explained, if they follow the correct procedure see Garside and Laycock Ltd v Booth for a recent(ish) EAT upholding this.

Edit to add: It is quite possible that their process is flawed, which is what the specialist advice may help with



Edited by anonymous-user on Wednesday 14th September 23:30

FGB

312 posts

92 months

Thursday 15th September 2016
quotequote all
wsurfa said:
FGB said:
wsurfa said:
FGB said:
Alternatively She could tell them that's not how it works and they should go fk themselves !

Tell your friend to get a lawyer / Citizen's Advice and take it from there !
Unfortunately, if the employer has followed the correct process, they can.


A few years ago one of the local council dismissed its entire workforce and re-engaged them on about a 5% cut
http://www.telegraph.co.uk/finance/personalfinance/5836105/Take-a-pay-cut-or-a-P45-what-are-your-rights.html

As I said get a lawyer / advice from a professional.
Agree they should get advice from a specialist employment lawyer, however he/she will explain employers can do what I explained, if they follow the correct procedure see Garside and Laycock Ltd v Booth for a recent(ish) EAT upholding this.

Edit to add: It is quite possible that their process is flawed, which is what the specialist advice may help with



Edited by wsurfa on Wednesday 14th September 23:30
Indeed doesn't sound like there's been much in the way of consultation.

Being told sign or fk off is not consulting last time I was involved in this sort of stuff wink.

Definitely do not resign!

Countdown

39,854 posts

196 months

Saturday 17th September 2016
quotequote all
Is this part of an organisation-wide "Job Evaluation/ Pay & Grading" review?

I'm guessing that, at some point, the HA would have been either an ALMO or part of the Council. In which case there would be a strong Union presence so your freind should refer to them as first point of call.


anonymous-user

Original Poster:

54 months

Sunday 18th September 2016
quotequote all
Countdown said:
Is this part of an organisation-wide "Job Evaluation/ Pay & Grading" review?

I'm guessing that, at some point, the HA would have been either an ALMO or part of the Council. In which case there would be a strong Union presence so your freind should refer to them as first point of call.
It's part of the latest round of 'consultations' or 'role review' programme. Several other departments such as finance and administration have all been shuffled around, but in those reviews, no one was asked to take a pay cut, but people were asked to move to different jobs for the same pay.

The HA has always been an independent. It started as a 'Housing Society' opened as a charity in 1966. It has never been part of the council.

She has now spoken to a solicitor and I will update the thread when I learn more.

The situation right now, is that she as been asked to sign the new contract and therefore accept the new pay, she has refused to do so, and it has turned into a bit of a Mexican standoff...

She is still doing any and all work that is asked of her as normal. But it raises a point that if she starts performing her new role when asked to do so, is this seen as her accepting her new contract?

I can't help thinking this won't end well for her as the HA always have consultants and lawyers coming out of their ears before making any changes to jobs, salaries and anything else HR related. So the chances are they are well prepared for any and every outcome.

4x4Tyke

6,506 posts

132 months

Sunday 18th September 2016
quotequote all
NinjaPower said:
She is still doing any and all work that is asked of her as normal. But it raises a point that if she starts performing her new role when asked to do so, is this seen as her accepting her new contract?
I think that would depend on the wording of any flexible duties clause in her existing contract. However that could easily work in her favour, by covering the new duties within existing contract.