Renumeration benefits at risk

[Puggit]

We've just received a global email from our CEO (based out of the US). In the US and Canada they are halting their pension contribution matching scheme, and we have no pay rises for 2010.

However, smuggled to the end of the email is the following:

CEO said:

Review of Certain Additional Benefits. We will also review other discretionary global benefit programs, including discretionary pension contributions outside the U.S., and auto benefits such as fuel cards, leased cars and auto allowances. In some countries, we currently provide such benefits at a rate that is above-market, and it is in our interest to reduce these expenses in order to focus our resources on our most critical measures and to do what we can to preserve jobs. And, as always, we will continue our regular review of our overall programs against market practice (e.g. health insurance) and make adjustments as appropriate.

Can I assume that UK/EU law protects us - and any attempt to remove/reduce such benefits would be 'constructive dismissal' ?

[DaveL86]

Puggit said:

Can I assume that UK/EU law protects us - and any attempt to remove/reduce such benefits would be 'constructive dismissal' ?

For anything to be considered 'constructive dismissal' I'm pretty sure you'd have to leave and then fight it once you've left, you might want to see if your remuneration package is detailed in your contract which could be breach of contract, refer to this link:

http://www.direct.gov.uk/en/Employment/ResolvingWo...

They didn't give any details on when this would be done in the email? I imagine when they come to renew contracts the remuneration package may have shrank a little, it sounds like a large international company and have probably looking into what they can do legally to reduce cost, but if it saves jobs its just one of those things with the state of the economy.