Dear Reader,
I got an interesting question from subscriber earlier this week – one I think you will want to know the answer to as well.
So today, I thought I would share the question (and its answer!) with you…
Here goes…
Question: I have a long term employee who has been with our organisation for 12 years. She performs her role adequately, but due to a downturn in business, we can no longer justify paying her current salary for the role.
We have looked at the option of redeployment, but this is not possible, as the employee does not have the skills or experience necessary for an alternative position within our organisation.
What can we do to avoid exposing ourselves to unfair dismissal laws?
Answer: If you think that the salary being paid for a job in your business is excessive (having regard to the tasks, skill and experience required by someone to perform that job), then this is a redundancy situation.
Remember, even if you create a new job that involves the performance of similar tasks, but which attracts a lower salary and requires a lesser level of skill and experience to perform, it is still a redundancy.
In order to avoid liability for an unfair dismissal claim in this situation, you will need to ensure that:
- you are downgrading the role because of the operational requirements of your business (not because you are unhappy with the employee’s work or conduct); and
- it is not reasonable for the employee to be redeployed within your business or a related business.
This may mean that you need to offer the new role (with the adjusted rate of pay) to the current occupant. You would also have to offer them any other suitable role that was vacant.
To find out the answers to more frequently asked employment law questions, keep an eye out for the Letters Section in your next Employment Law Practical Handbook update.
It will be packed full of subscriber questions and answers just like this one, and it’s due in your mailbox shortly!
Not yet a subscriber to the handbook? Click here for more information.
Until next time…
Claire Berry
Workplace Bulletin
