In Slade v TNT (UK) Ltd [EAT/0113/11], TNT carried out a cost cutting exercise in response to its declining profits. As a part of the exercise, TNT offered to pay “buy out” money to its employees if they agreed to the withdrawal of a bonus scheme. But TNT was unable to obtain the employees' agreement after it had consulted and negotiated with them.
TNT dismissed its employees and offered new contracts to them - after it had warned them that it would do so - if they did not accept its final offer. The employees were not entitled to a bonus under the new contracts.
The EAT held that the dismissals were fair – even though the new contracts were not accompanied with the “buy out” money - that TNT had initially offered to pay to its employees [see paras 38 and 39].
1 comment:
Royal Berkshire Hospital (RBH) is also offering "buy out" money to its nurses if they agree to the withdrawal of their recruitment and retention allowance (RRA).
RBH will dismiss the nurses and offer new contracts to them – if they do not agree to the withdrawal of the RRA.
http://www.bbc.co.uk/news/uk-england-berkshire-15000613
Post a Comment