| Good News for Employers wishing to change the | | | | A Tribunal should not 'second guess' an employer's |
| terms of employment of employees, however, | | | | business decision; |
| employers must still take care. | | | | A Tribunal should evaluate whether dismissal was due |
| In Scott & Co v Richardson [2005], the | | | | to the employer's reasonable belief that the contract |
| Dependant, Mr Richardson, who worked for a | | | | changes had advantages; and |
| Scottish firm of debt collectors, refused to accept his | | | | The employer did not need to prove that those |
| new terms of employment which required him to visit | | | | advantages objectively exist. |
| defaulting debtors during the evenings. Mr Richardson | | | | This is good news for employers who can rely on |
| agreed to work evenings but only if this would | | | | the principle that the tribunal must respect their |
| continue to attract overtime payments as had | | | | commercial decisions in assessing whether a fair |
| previously been the case. Scott & Co tried for | | | | reason for dismissal has been shown. However this |
| seven months to persuade Mr Richardson to change | | | | must be tempered by another EAT decision in |
| his mind but he refused, finally issuing an ultimatum | | | | Forshaw and others v Archcraft Limited [2005], |
| that his employer should either accept his position or | | | | where the EAT relied on its own assessment that |
| dismiss him. They chose to dismiss him. | | | | the clause in question was unreasonable and found |
| At first instance, Scott & Co claimed that the | | | | that the dismissal was unfair. In Forshaw the EAT |
| change in working conditions was required to bring | | | | said that while the tribunal generally will not re-open |
| the company into line with new market practices and | | | | the commercial decisions of an employer's |
| to allow them to plan work more cheaply and | | | | management, however, a reason which is genuinely |
| effectively. Mr Richardson argued that Scott & | | | | held but is trivial or unworthy or whimsical will mean |
| Co had failed to prove that there were advantages | | | | that the dismissal is unfair. |
| to the new working arrangements and that the real | | | | Comment: Provided that care is taken, changes to |
| reason for the changes was to save money in | | | | employment terms which are supported by sound |
| overtime payments. | | | | commercial reasons will be acceptable under the law. |
| Mr Richardson succeeded in his claim for unfair | | | | If you require further information contact us. |
| dismissal and the Employment Tribunal held that it did | | | | Email: © RT COOPERS, 2005. This Briefing Note |
| not appear that the imposition of the shift system | | | | does not provide a comprehensive or complete |
| was of such discernible advantage that the only | | | | statement of the law relating to the issues discussed |
| reasonable thing to do was to terminate the | | | | nor does it constitute legal advice. It is intended only |
| employee's contract unless he would agree to the | | | | to highlight general issues. Specialist legal advice should |
| new arrangement. | | | | always be sought in relation to particular |
| On appeal the EAT overturned this decision and held | | | | circumstances. |
| that:- | | | | |