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taratill, Solicitor
Category: Employment Law
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Experience:  15 years experience of advising on employment law matters
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My boyfriend has been employed by the NHS -8 years on a

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My boyfriend has been employed by the NHS for 7-8 years on a permanent contract, which is supposed to be pay protected. Their department provided a service and they recently lost the tender. The service is now being transferred to a private company. The staff have been informed they're being moved under TUPE. The new company are claiming for economic reasons they have to reduce their salary, and if they object it will class as resignation. The pay reduction is quite significant, and my boyfriend wouldn't be able to stay working there, should it all finalise. Are they allowed to do this?
Submitted: 1 year ago.
Category: Employment Law
Expert:  taratill replied 1 year ago.
Hello my name is ***** ***** I am happy to help you today. By how much are they reducing his pay?
Customer: replied 1 year ago.
It's going from £25,000 pa to £17,000.
Expert:  taratill replied 1 year ago.
Are they giving any formal notice of a change in terms and conditions?
Customer: replied 1 year ago.
They've not said... but I assume they will. They have a meeting with union reps, all the staff and the heads of the department next week. So far they've had a letter stating the new company can change their terms and conditions of employment as they wish. I suspect after the meeting they will put the pay cut in writing.
Expert:  taratill replied 1 year ago.
They need to be given notice of a change in terms and conditions otherwise it can amount to an unlawful deduction from ages. Normally in a TUPE situation the transfer is on the same terms and conditions including pay. The exception to this is if there is a valid ETO reason (Economic Technical or Organisational reason) to reduce pay. This is what it seems they are suggesting. Your boyfriends options are either to accept the new terms or to treat the contract as terminated and claim unfair dismissal/ constructive dismissal. The employer will then have to justify the pay cut. He is in a very difficult position.The union should be trying to assist the staff in this situation. If you have any further questions please do ask If I have answered your question I will be grateful if you would take the time to rate my answer, thank you and all the best.
Expert:  taratill replied 1 year ago.
Hi Jessica is there anything further you would like to know?
Customer: replied 1 year ago.
Thank you, ***** ***** pretty much as I suspected. My question would be - the new company bid for the tender, knowing the staff that are already employed by the service and they would have to take on? If it was a private client to client service and the work didn't come in, economic reasons would make sense. The new company already have their money guaranteed from the government to provide the service, which won't be reduced. Would this be a sensible theory to make a pay cut unfair? I don't understand the point why they were ever pay protected if this can happen?
Expert:  taratill replied 1 year ago.
I see your point and you could certainly argue that it is unfair for that reason. I really do wish you all the best. If you have any further questions please do as. If I have answered your question I would be grateful if you would take the time to rate my answer.Thank you and all the best.
taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6307
Experience: 15 years experience of advising on employment law matters
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