CALLING ALL
READERS
We want to hear your employment
law issues. Send us your questions
to feature here next month.
Email: chris.beck@markallengroup.com
such as the right not to be
unfairly dismissed and statutory
redundancy entitlement.
Whilst the law is there to
assist employees in this scenario,
it can be of little comfort in
terms of the certainty of their
position. Despite your efforts to
clarify your status having been
dismissed, we would recommend
that you request a formal
meeting with HR to discuss the
terms and conditions of your
employment. If your employer
seeks to impose less favourable
terms, you should seek legal
advice as the employer may
not be entitled to unilaterally
impose new terms. In such a
case, you may have the option to
resign and claim unfair dismissal
(subject to the minimum period
of two years’ service).
Our managing director
has recently retired.
Before she left, she promised
a promotion to a member
of our middle management.
However, this was never
formalised. The member of
staff is now demanding that
the promised promotion is
honoured, but the new MD is
vehemently against the idea,
saying he wants ‘a period
of stability before we start
chopping and changing’. Can
we retrospectively retract an
offer of promotion – even just
a verbal one?
The key question is whether the
employee’s terms and conditions
have been varied by a contractual
promise. An oral agreement is as
valid as a written agreement.
It is undeniable that the
previous managing director had
authority to bind the employer,
but did they intend to create a
contractually binding promise?
This is likely to be difficult to
prove either way; although if
other terms, such as pay benefits
and date of the promotion were
discussed, this could indicate
such an intention.
If a contractually binding
promise has been made and
you attempt to revoke it, the
employee may have an action
against you for breach of
contract. Additionally, there is a
duty implied into every contract
of employment of mutual trust
and confidence. Consequently,
the employee has most likely lost
all trust and confidence in you as
a company having revoked their
promotion and this breach of
duty may entitle them to resign
and claim unfair dismissal. Such
claims are potentially costly and
disruptive at a time when you are
seeking stability.
Even if such claims are not
pursued and/or the employee
chooses not to resign, the best
scenario for you is that you
will be left with an aggrieved
and demotivated employee if
the promotion is withdrawn or
delayed. A grievance may also
follow, and with it the associated
investment of time and energy
in seeking to address it.
In summary, the headline
answer is you can retract, but in
doing so you need to recognise
the potentially significant risks
that arise. The question will
ultimately be whether those
risks outweigh the benefits
of putting the promotion on
hold. To compromise, you may
consider a variation of the offer
rather than a retraction – for
example an agreed but delayed
promotion date. The employee
would then have confidence the
change will happen, whilst the
MD gets the period of stability
he is seeking.
Know your law...
The Employment
Rights Act 1996
codifies existing
law on individual rights in UK
labour law. It deals with rights
that most employees can get
when they work, including unfair
dismissal and redundancy.
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advertisers to know they’re getting the
exposure they’ve been promised.
Everyone wants to get what they paid for. Manufacturing
Management is independently verified by ABC, because we our advertisers to know they’re getting the exposure they’ve
been promised.
Everyone wants to get what they paid for. Manufacturing
Management is independently verified by ABC, because we want
our advertisers to know they’re getting the exposure they’ve
been promised.
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