Call me on 01832 776464

Sarah King Employment Solicitor

gurantee paymentsIn this times of tough climate it is not unheard of for employers to implement various measures to cut costs but avoid redundancies. Measures I have seen are temporary reductions in the working week, reductions in hours per day, periods of unpaid holiday and removal of many company perks.

Whilst there is obviously the need to consult such on such changes, it is important to consider the other aspects of employment law even where the change is agreed as well of course balancing the effect on employee morale. The Court of Appeal case of Abercrombie v Aga Rangemaster Ltd 2013 is a useful reminder of unconsidered implications,  In this case, the staff agreed to not work Fridays for several months.  An issue then arose about whether the employees should have received a guarantee payment.  The Employment Tribunal and the Employment Appeal Tribunal both said no.

The Court of Appeal disagreed.  It held that just because it was an agreed temporary variation did not preclude a guarantee payment being due for that Friday.  Throughout the agreed period Fridays remained days where the employees were contractually required to work so being workless entitled them to a guarantee payment for that day.  Given it was an agreed variation this can sometimes be overlooked so it is important to watch out for that hidden angle.

(Our news section brings you the latest news on published judgments and cases which are all in the public domain. We only comment on these published cases and not cases of our actual clients. Publication of the case or comments is a public service designed to make the courts and tribunals more accessible and ensures justice is seen to be done. This is why court and tribunal judgments are published publicly.)