Is there such a thing as an implied term of employment?
Discussion
Say a person has been employed in sales for the same business on a package of £x salary + y percentage of revenue for a number of years, where the percentage of revenue is not target based but is a percentage of all revenue brought into the company, is it legal for the employer to suddenly cut that percentage commission dramatically?
The commission percentage is not in the contract but it has been fixed for over a decade. Can this be done?
Cheers!
The commission percentage is not in the contract but it has been fixed for over a decade. Can this be done?
Cheers!
You are really dealing with a term to be inferred from conduct rather than an implied term, strictly speaking.
http://en.wikipedia.org/wiki/Contractual_term#Cour...
http://en.wikipedia.org/wiki/Implied_terms_in_Engl...
Note that an employer can sometimes justify a dismissal for failure to agree a change to the contract if the employer can show a pressing business need for the change.
http://en.wikipedia.org/wiki/Contractual_term#Cour...
http://en.wikipedia.org/wiki/Implied_terms_in_Engl...
Note that an employer can sometimes justify a dismissal for failure to agree a change to the contract if the employer can show a pressing business need for the change.
Thanks again.
If this happens to the parties involved then they will by default be dismissed anyway as the commissions are over 50% of their earnings. I assume the employer is trying to push them out of the door to avoid expensive redundancies as most of the team have been there between 8 and 16 years!
Is there a course of action in this type of scenario, would it come under constructive dismissal or other? (I know nothing about these things I'm afraid).
If this happens to the parties involved then they will by default be dismissed anyway as the commissions are over 50% of their earnings. I assume the employer is trying to push them out of the door to avoid expensive redundancies as most of the team have been there between 8 and 16 years!
Is there a course of action in this type of scenario, would it come under constructive dismissal or other? (I know nothing about these things I'm afraid).
An employee could resign and claim constructive dismissal if the employer repudiates the contract, but that's a risky course. Attempting to negotiate, even if it means accepting some reduction, might be worthwhile. It is important to act promptly and to make clear your objection, to avoid it being said that you have waived the breach by conduct.
I don't think there will be much negotiation happening in all honesty. I've seen the way these guys operate previously. They'll most likely have all HR angles covered and have a 'if you don't like it...' attitude. It will be either accept it or you're out if they pursue this course.
My real interest is in the best course of action for the long term employees should they not be dissuaded from this.
My real interest is in the best course of action for the long term employees should they not be dissuaded from this.
"a ‘constructive obligation’ is where as a result of ‘an established pattern of past practice, published policies or a sufficiently specific current statement’ the business has created a ‘valid expectation’ that it will meet certain responsibilities."
Do some googling for 'constructive obligation'.
HTH
Do some googling for 'constructive obligation'.
HTH
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