Cases2216347/2024

Claimant v Crussh Retail Limited

18 November 2024Before Employment Judge FordeLondon Centralremote video

Outcome

Claimant succeeds

Individual claims

Constructive Dismissalsucceeded

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.

Unfair Dismissalsucceeded

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.

Redundancy Paysucceeded

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.

Breach of Contractfailed

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.

Detrimentfailed

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

Berriman v Delabole Slate Limited [1985] ICR 546Malik v Bank of Credit and Commerce International [1998] AC 20

Statutes

ERA 1996 s.136(1)(c)ERA 1996 s.86ERA 1996 s.139(1)(b)ERA 1996 s.95(1)(c)

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