Unfairly dismissed for refusing to accept changes to employment terms
An employment tribunal has considered the case of a solicitor who was unfairly dismissed for refusing to agree to changes to her employment contract which were part of her employer’s response to the coronavirus pandemic. Why did it decide the dismissal was unfair?
In Khatun v Winn Solicitors Ltd 2021, the employer (a law firm) had required all its staff to agree to a change to their employment contracts to give it the right to place them on furlough or to unilaterally reduce their working hours and pay to 80% should the business need arise. Ms Khatun (K) wasn’t one of the staff earmarked for immediate furlough, but she was the only employee to refuse to accept the change. She stated that, if it became necessary to furlough her or to reduce her hours in the future, she would consider a contract variation at that stage. She was dismissed due to her refusal to consent.
The employment tribunal accepted that the potentially fair reason for K’s dismissal was “some other substantial reason” as the employer had sound, good business reasons for requesting the contract variation, but K’s dismissal was unfair because the employer hadn’t acted reasonably in all the circumstances in dismissing her for that reason. In particular, there was no meaningful consultation with her, and her employer had failed to reasonably explore alternatives to dismissal. It had decided at the start of the process that the new contract terms were non-negotiable and that anyone refusing to accept them would be dismissed. It had then dismissed K only two days after sending her the new terms. It had also failed to offer her an opportunity to appeal against the dismissal decision, which might have provided an opportunity for both sides to calm down, consider their respective positions and reach an agreement.
This case demonstrates the need to act reasonably in dismissing an employee for their refusal to accept contractual changes, even where those changes are a necessary response to the coronavirus pandemic. This includes following a fair dismissal procedure, incorporating full consultation, and considering all alternatives and compromises.
Related Topics
-
HMRC writes to non-domiciled taxpayers following rule changes
HMRC has begun issuing “one-to-many” letters to individuals affected by recent changes to the tax rules for non-UK domiciled taxpayers. The letters prompt recipients to review their tax position under the new regime. What does this mean if you receive one?
-
Can officers ignore minor input tax errors?
If your business has claimed input tax on an invoice where the supplier has charged VAT incorrectly, HMRC can disallow your claim by issuing an assessment. Can the officer waive that power to achieve a common sense outcome?
-
Practical guide: Tax-efficient will planning with residential property
An individual has a significant property portfolio which provides them with their sole source of income. They want to gift shares in some property to their daughter but retain the income. Can they do this without triggering the reservation of benefit rules?