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Employment Law

Legal guidance - compliance - software

02 NOV 2012

SW Global Resourcing Limited v Docherty UKEATS/0032/11/BI; (2012) EMPLR 158

Contract of employment - change of status - consultation

8 May 2012

Employment Appeal Tribunal

Lady Smith, Miss J Gaskell and Mrs A Hibberd

The need to save costs in a recession by changing employees' status to casual workers with no guaranteed hours of work can be a ‘substantial reason for dismissal' and can be fair if there are sound business reasons for it and the employees have been properly consulted.

Two employees were consulted over becoming engaged on an ad hoc, ‘when needed' basis. They were asked to sign new contracts reflecting the new arrangement. They resigned and complained that they had been constructively dismissed. The EAT held the dismissals were fair because there were sound business reasons and the employers had fully consulted over a long period.

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