Q&As

After agreeing to a reduction in salary in order to avoid a redundancy situation, can an employee later withdraw that consent if a redundancy situation subsequently arises, and what are the implications, including for any redundancy payment?

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Published on LexisPSL on 15/09/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • After agreeing to a reduction in salary in order to avoid a redundancy situation, can an employee later withdraw that consent if a redundancy situation subsequently arises, and what are the implications, including for any redundancy payment?

In relation to withdrawing consent, one would need to consider first whether the employee’s original consent to the proposed reduction in salary was effective in changing their terms and conditions of employment. Normally, express consent to a proposed variation is effective in changing the terms of the contract, provided that:

  1. the consent is given freely and free from duress

  2. it is supported by consideration

For further information, see Practice Note: Changing terms and conditions of employment in ‘Changes not permitted by the contract: obtaining consent’.

In some cases, an employee’s implied consent to the change will be effective in changing the terms of the contract (see Practice Note: Changing terms and conditions of employment in ‘Changes not permitted by the contract: implied agreement to the change’).

The specific circumstanc

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