Overview

Where an employee has been dismissed for failing to accept a pay cut it may be relevant to consider whether management have also taken a pay cut when deciding if the dismissal was unfair. This briefing from Shoosmiths discusses the impact of a recent tribunal decision.

The Employment Appeal Tribunal (EAT) has overruled a tribunal’s decision that an employer unfairly dismissed an employee for failing to accept a pay cut where the employer was facing trading difficulties.
The EAT remitted the case to a different tribunal to reconsider the case and set out guidelines for the tribunal to consider in such situations.