Conveyancing solicitor awarded £11,657 after employer unilaterally cut salary by 25%
A conveyancing solicitor who resigned after her employer threatened a 25% pay cut without agreement has won £11,657 in notice pay. The tribunal found the employer's unilateral salary reduction was a fundamental breach of contract.
2 min read · Last updated 18 May 2026
Case details
- #unilateral-salary-reduction
- #constructive-dismissal
- #notice-pay
- #breach-of-contract
- #counterclaim-dismissed
Key facts
- The claimant was employed as a conveyancing solicitor with a salary of £75,000 per annum.
- On 26 January 2022, the respondent emailed the claimant stating her salary would be reduced by 25% from 1 February 2022.
- The contract required renegotiation for any salary reduction, not unilateral imposition.
- The claimant resigned on 1 February 2022 in response to the threatened reduction.
- The claimant mitigated her loss by earning £18,054.50 from new employment.
- The respondent's counterclaim for breach of contract was dismissed for lack of evidence.
Timeline
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Contract signed
Claimant signed contract of employment with salary of £75,000 per annum and schedule allowing renegotiation after six months.
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Employment commenced
Claimant started work as a conveyancing solicitor.
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Claimant gave notice
Claimant handed in six months' notice of resignation.
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Oral grievance raised
Claimant raised an oral grievance about bullying by Emma Kearsey, which was never addressed.
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Locum solicitor employed
Respondent employed a locum solicitor to assist with workload.
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Salary reduction notice
Respondent emailed claimant stating salary would reduce by 25% to £56,250 from 1 February 2022.
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Respondent proposed five-day week
Respondent suggested claimant work five days a week to make up shortfall.
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Claimant sought clarification
Claimant asked for clarification on the proposal; respondent did not provide clear answers.
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Claimant resigned
Claimant resigned with immediate effect after taking legal advice, citing fundamental breach.
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Mitigation period end
Claimant's new employment earnings up to this date were used to calculate mitigation.
The legal issue
The tribunal had to decide whether the employer's threat to cut the claimant's salary by 25% without her agreement was a fundamental breach of contract, allowing her to resign and claim damages for the notice period she would have worked.
The outcome
The tribunal found in favour of the claimant on her breach of contract claim for notice pay. The employer's counterclaim for breach of contract was dismissed due to lack of evidence.
The key reason was that the employer's email of 26 January 2022 unilaterally reducing the claimant's salary from £75,000 to £56,250 per annum from 1 February 2022 was a fundamental breach of the contract, which required renegotiation for any salary change. The claimant was entitled to treat the contract as repudiated and resign.
Damages awarded:
- Total: £11,657.09 (gross pay, reflecting likely tax as Post Employment Notice Pay)
- No basic or compensatory award as this was a breach of contract claim, not unfair dismissal.
Lessons & takeaways
- Employers cannot unilaterally reduce an employee's salary unless the contract expressly allows it; any such change requires the employee's agreement.
- If an employer imposes a fundamental change without consent, the employee may resign and claim damages for breach of contract, including notice pay.
- Employees with less than two years' service cannot claim unfair dismissal but can still bring breach of contract claims for notice pay.
- Keep clear records of any grievances raised, as failure to address them can support a claim of breach of mutual trust and confidence.
- Mitigation of loss (e.g., finding new work) will reduce the damages recoverable, so claimants should actively seek alternative employment.
When a pay cut becomes a fundamental breach
This case shows the risks employers take when they try to change a key term of an employment contract without the employee's consent. The claimant, a conveyancing solicitor, had been employed for less than a year when her employer emailed her to say her salary would be cut by 25% from the following week. The contract stated that salary could be renegotiated after six months, but it did not allow the employer to impose a reduction unilaterally.
The solicitor had already given six months' notice of resignation due to an unresolved bullying grievance. When she received the pay-cut email, she took legal advice and resigned with immediate effect, arguing that the employer's action was a fundamental breach of contract. The tribunal agreed, noting that the employer had no contractual right to reduce her salary without agreement.
What the employer could have done differently
The employer could have avoided this claim by following the contractual process: if it wanted to reduce the claimant's salary, it should have sought her agreement or, failing that, considered terminating her employment with notice and offering re-engagement on new terms. Instead, the unilateral email amounted to a repudiation of the contract, giving the claimant the right to resign and claim damages.
Why this matters for similar claims
This case is a reminder that even employees with short service can bring breach of contract claims for notice pay, even if they cannot claim unfair dismissal. The key is whether the employer's action was a fundamental breach – a significant change to a core term like salary will almost always qualify. The claimant's successful mitigation (earning over £18,000 in new employment) reduced her loss, but she still recovered the balance of her notice pay.
For employees facing a unilateral pay cut, the message is clear: you do not have to accept it, and resigning in response can be a valid legal remedy. For employers, the lesson is that contractual terms must be respected, and any variation requires agreement or proper notice.
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