If a change to employment contracts is essential for the survival of the business, would it reduce any compensation for constructive dismissal?
The overriding obligation in respect of claims for unfair (constructive) dismissal is to award such compensation as is ‘just and equitable’. Generally the tribunal would not reduce compensation in this situation. If the employer can argue that the contracts would have been terminated shortly in any event, then the period of loss may be reduced. It is however very difficult to justify any failure to warn or consult in such situations, with a view to getting agreement to the change, so the employer must follow the correct procedure.
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