Orac Information Systems Ltd v Meehan [1996] UKEAT 1219_95_2102 (21 February 1996)

Reduction of salary to nil without contractual authority and realistic opportunity to earn commission constitutes a fundamental breach, amounting to constructive dismissal.

Citation: [1996] UKEAT 1219_95_2102
Parties: Appellant: ORAC Information Systems Ltd; Respondent: Mr Meehan
Jurisdiction: United Kingdom
Judgment Date: 21 February 1996
Procedural Posture: Employment Appeal / Preliminary Hearing
Outcome: appeal dismissed
Legal Topics: Constructive Dismissal, Contract Variation, Salary Reduction

Employment Law Constructive Dismissal Contract Variation Salary Reduction

Case Brief

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Parties

ORAC Information Systems Ltd

Appellant

Mr Meehan

Respondent

Procedural Posture

Employment Appeal / Preliminary Hearing

Legal Issues

1 Whether unilateral reduction of salary to nil constitutes constructive dismissal
2 Whether employer had contractual right to reduce salary to nought

Ratio Decidendi

Reduction of salary to nil without contractual authority and realistic opportunity to earn commission constitutes a fundamental breach, amounting to constructive dismissal.

Court Disposition

appeal dismissed

Orders

Appeal fails and is dismissed.