Failure to accept a decrease in pay may be a legitimate reason for dismissal. It was held recently that an employee who was the only one out of a group of 77 not to accept the 5% decrease, had been lawfully dismissed by his employer, as it seemed more reasonable for him to accept the pay cut than the employer not to try and boosts its profitability to keep the company afloat. This falls under the branch of “some other substantial reason” for dismissal and was held to be fair.

Published: 05 Aug 2011


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