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Jo C.
Jo C., Barrister
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Experience:  Over 5 years in practice
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My employer has decided they will no longer pay an additional

Customer Question

My employer has decided they will no longer pay an additional payment for being I charge of a retail unit, I have recived this payment for 18 years - is it fair that it can be taken away just like that? I will loose £100 per month.
Submitted: 2 years ago.
Category: Law
Expert:  Ben Jones replied 2 years ago.

Ben Jones : Hello, my name is Ben and it is my pleasure to assist you with your question today. Have they given their reasons as to why this is being done?
Ben Jones :

Hi, not sure if you saw my initial query above - Have they given their reasons as to why this is being done?

JACUSTOMER-ce8x2sgb- : Hi, just found your response in my spam folder.
JACUSTOMER-ce8x2sgb- : Reasons are that only 15% of employes get this preium payment due to new contracts coming into place.
JACUSTOMER-ce8x2sgb- : we have been given a 10% one off 'goodwill' payment, however I am due to loose £100 per month
Ben Jones :

Hi, thanks for getting back to me. The fact that this payment has been paid for such a long time means it is highly likely it has a contractually binding benefit.

There are a few ways in which an employer may try and make changes to an employee’s contract of employment. These are by:

  • Receiving the employee’s express consent to the changes.
  • Forcefully introducing the changes (called 'unilateral change of contract').
  • Giving the employee notice to terminate their current contract and then offer them immediate re-engagement under a new contract that contains the new terms.

If the changes are introduced without the employee's consent, then the following options are available:

1. Start working on the new terms but making it clear in writing that you are working ‘under protest’. This means that you do not agree with the changes but feel forced to do so. In the meantime you should try and resolve the issue either by informal discussions or by raising a formal grievance.

2. If the changes fundamentally impact the contract, for example changes to pay, duties, place of work, etc., you may wish to consider resigning and claiming constructive dismissal. The resignation must be done without unreasonable delay so as not to give the impression that the changes had been accepted. The claim must be submitted in an employment tribunal within 3 months of resigning and is subject to you having at least 2 years' continuous service. You would then seek compensation for loss of earnings resulting from the employer's actions.

3. If the employment is terminated and the employer offers re-engagement on the new terms that could potentially amount to unfair dismissal. However, the employer can try and justify the dismissal and the changes if they had a sound business reason for doing so. This could be pressing business needs requiring drastic changes for the company to survive. If no such reason exists, you can make a claim for unfair dismissal in an employment tribunal. The same time limit of 3 months to claim and the requirement to have 2 years' continuous would apply.

Hope this clarifies your position? If you could please let me know that would be great, thank you

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