Law queries

Our employers have announced that we are going from seven-day to five-day working. This will mean a 12% cut in pay. Do they have the right to do this and what can we do to stop it?

A major change like this is likely to amount to a fundamental breach of contract. There could be the basis of a claim to the courts to restore the original contract. Alternatively it may be possible to argue that there has been an unlawful deduction of pay. In one recent case the Employment Appeal Tribunal (EAT) held that a decision to put employees on to short-time working and reduce their hours and thus their pay without their agreement amounted to an unlawful deduction. The fact that in the past changes to hours had been agreed did not mean the employer had the right unilaterally to vary the contract. According to the EAT a reduction in working hours is plainly a variation of contract.

* More information: International Packaging Corporation v Balfour EAT/31/02