Richmond Precision Engineering Ltd v Pearce

Facts

Mr Pearce was offered a new contract with the company that had bought his employer’s business. Pay was lower, hours were more, holidays were reduced and the occupational pension and fringe benefits were gone. He rejected the offer and claimed unfair dismissal.

The Tribunal upheld Mr Pearce’s unfair dismissal claim, and Richmond Precision Engineering appealed.

Judgment

Beldam J in the EAT overturned the Tribunal. The test was whether a reasonable employer could have offered the same terms in the circumstances, including ones disadvantageous or advantageous to both parties. The employee being worse off was not a sufficient reason.