Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Weekly dilemma: ‘death in service’ benefit cuts

by Personnel Today 3 Feb 2010
by Personnel Today 3 Feb 2010

We are tightening our belts and one of the areas to face the chop is right to death in service payments. I also want to establish our sick pay policy for long-term absences at the basic statutory rate. Are there any legal implications I should be aware of before announcing these changes?


It is important to establish whether these are contractual benefits and, if so, whether there are provisions within the terms of the contract which would allow flexibility. It is possible that these benefits are discretionary, but more likely that they are contractual obligations.


Assuming they are contractual, you will need to either agree with each employee that their contract will change, or terminate the contract. Option two of course amounts to a dismissal, which could give rise to potential unfair dismissal claims. A fair process will be crucial to any unfair dismissal defence. It will also provide you with the best chance of reaching an agreement with the affected employees.


The process you adopt may depend on whether 20 or more employees are affected. If so, you need to consider whether you have statutory redundancy consultation obligations. Dismissals that result from employees refusing to agree to contractual changes will be regarded (for the purposes of consultation, but not redundancy pay entitlement or unfair dismissal) as redundancy dismissals. You must therefore carefully consider the statutory consultation obligations where larger numbers of employees are affected, as there will be potential (and sizeable) protective awards liabilities for non-compliance.


Whether you are dealing with two or 2,000 employees, however, it is important to engage in genuine consultation with those potentially affected, explaining the reasons why cuts are being considered and keeping an open mind – employees may accept the need for cuts, but may have an alternative. For example, they may value the death in service benefit and be prepared to sacrifice another benefit or reduce pay. They are also likely to ask whether the cuts are permanent, or whether benefits may be reinstated when circumstances improve.


Where there is wholesale disagreement to the changes, then you may be advised to “go back to the drawing board” rather than forcing changes through by dismissals. Often, where there are good reasons for change and a fair process has been followed, the vast majority of employees will agree, and you may need to dismiss a small number of employees. Those employees may bring unfair dismissal claims. Employment tribunals will recognise the reason for dismissal being within the definition of “some other substantial reason”, and should also be influenced by the consent of the majority.


Mark Leach, partner, employment team , Weightmans LLP


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

 








MORE FROM XPERTHR


Handling the death of an employee requires employers to combine practicality and sensitivity. Click here for our full guide.

Personnel Today

previous post
Default retirement age: Why we should scrap it
next post
Case of the week: O’Neill v Buckinghamshire County Council

You may also like

Forward features list 2025 – submitting content to...

23 Nov 2024

Features list 2021 – submitting content to Personnel...

1 Sep 2020

Large firms have no plans to bring all...

26 Aug 2020

A typical work-from-home lunch: crisps

24 Aug 2020

Occupational health on the coronavirus frontline – ‘I...

21 Aug 2020

Occupational Health & Wellbeing research round-up: August 2020

7 Aug 2020

Acas: Redundancy related enquiries surge 160%

5 Aug 2020

Coronavirus: lockdown ‘phase two’ may bring added headaches...

17 Jul 2020

Unemployment to top 4 million as workers come...

15 Jul 2020

Over 1,000 UK redundancies expected at G4S Cash...

14 Jul 2020

  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more
  • Preparing for a new era of workforce planning (webinar) WEBINAR | Employers now face...Read more
  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+