Claimant v Crussh Retail Limited
Outcome
Individual claims
The tribunal found that the claimant's demotion from area manager to store manager and placement in the Bankside store amounted to fundamental breaches of contract by way of unilateral variation. The roles were fundamentally different, and the change was a material demotion. The claimant resigned on 3 December 2023 in response to these breaches, and the short period of correspondence did not amount to affirmation of the variation.
The tribunal found that the dismissal was by reason of redundancy under s.139(1)(b) ERA 1996, as fewer employees were needed to do the claimant's work following restructuring. The respondent wrongly assessed that the claimant was not redundant and offered no equivalent alternative role. The store manager role was materially different and amounted to a demotion.
The tribunal found that the claimant was effectively redundant by 20 October 2023 as a result of the respondent's restructure. The respondent misdirected itself in concluding the claimant was not redundant. The need for the area manager role had diminished due to new suppliers and changed working methods.
The tribunal found the claimant received what he was entitled to receive. His contract entitled him to six weeks' notice, which was paid. The claim for additional notice pay was not made out.
The claimant's complaints regarding alleged non-compliance with grievance procedures and ACAS guidelines were not well founded. The tribunal found no formal grievance was raised, and the correspondence from Mrs Riddell did not amount to a grievance outcome.
Facts
The claimant was promoted to area manager in May 2019. Following the pandemic and financial difficulties, the respondent's business shrank from 35 stores to 8. In July 2023, the claimant was offered a new role as retail stores manager with increased salary, which he did not accept. By October 2023, the respondent withdrew this offer and instead required him to take up a store manager role, which he accepted under protest in November 2023. He resigned on 3 December 2023, claiming constructive dismissal.
Decision
The tribunal found the claimant was constructively and unfairly dismissed. The demotion from area manager to store manager was a fundamental breach of contract by unilateral variation. The dismissal was by reason of redundancy, as the need for the area manager role had diminished. The respondent wrongly concluded no redundancy had occurred. The breach of contract claim (wrongful dismissal) failed as the claimant received his contractual notice entitlement.
Practical note
Where a business restructure genuinely eliminates or diminishes the need for a role, an employer cannot unilaterally impose a substantially different and more junior role without following proper redundancy procedures, even if the employee is offered time to consider alternatives.
Legal authorities cited
Statutes
Case details
- Case number
- 2216347/2024
- Decision date
- 18 November 2024
- Hearing type
- full merits
- Hearing days
- 3
- Classification
- contested
Respondent
- Sector
- retail
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Area Manager
- Salary band
- £40,000–£50,000
Claimant representation
- Represented
- No