0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

pay-cuts – fair if everyone’s in the same boat?

6 July 2011

As employers look to cut costs, the employment appeal tribunal has given guidance to those seeking to impose pay-cuts.

Building maintenance company Garside and Laycock faced trading difficulties and sought to reduce employees’ pay by 5%. Mr Booth was the only employee out of 88 not to accept the pay-cut and was dismissed.

The EAT set aside an employment tribunal’s decision that Mr Booth was unfairly dismissed and in doing so reminded us that:

  • a proposed pay-cut need not be “vital for the employer’s survival” to justify a dismissal for not accepting it
  • when considering fairness the correct question to ask is whether it was reasonable for the employer to have dismissed the employee not whether it was reasonable for the employee to have rejected the proposed pay-cut and
  • whether such a dismissal is fair must be considered “in accordance with equity” and that it may not be equitable if a pay-cut is proposed for the majority of the workforce but excludes management

related opinions

A landlord’s service charge certificate was conclusive as to the sums payable by a tenant under a lease

The Court of Appeal has ruled that the wording of a service charge clause precluded a tenant from challenging the sums claimed by a landlord.

View blog

Handing back an empty shell of a building did not fulfil a vacant possession break condition

Break rights have proved a fertile source of litigation over the last few years. Courts have consistently required strict compliance with the terms of those rights.

View blog

Retail ATMs and business rates: clarity at last!

Judgement has been handed down for the seminal case of Cardtronics UK Ltd and others (Respondents) v Sykes and others (Valuation Officers) (Appellants) [2020] UKSC 21.

View blog

More protection required for retailer workers as violence is on the rise, according to latest statistics

Following an MP debate on 5 November 2019, the government is due to release long-awaited guidance as to how it intends to protect workers in the retail industry against violence, harassment and abuse.

View blog

mailing list sign up

Select which mailings you would like to receive from us.

Sign up