Demotion that triggered visa salary breach: dismissal for some other substantial reason upheld

When a demotion costs you the right to work

This case shows how a disciplinary decision can have unintended consequences for an employee's immigration status. The claimant, a care coordinator with six years' service, was demoted after a disciplinary hearing found she had kept inaccurate data. The demotion reduced her salary below the minimum earnings threshold required by her Tier 2 sponsorship visa. The employer contacted the Home Office and was told that continuing to employ her could lead to fines or prosecution. The employer then dismissed her because she no longer had the right to work in the UK.

What the employer could have done differently

The tribunal accepted that the employer acted on the Home Office's advice, but the case highlights the importance of considering whether the employee could resolve the visa issue. The claimant had appealed the demotion, but her appeal was rejected as out of time. If the employer had waited for the outcome of that appeal, or explored whether the claimant could find another way to meet the visa requirements, the dismissal might have been avoided. However, the tribunal found that the employer's decision to dismiss was within the range of reasonable responses, given the clear legal risk.

Why this matters for similar claims

This case is a reminder that a dismissal based on loss of the right to work can be fair, even if the employee disputes the underlying reason for the salary change. For employees on work visas, any change in salary or job role could affect their immigration status. It is important to raise any concerns about a demotion or pay cut as early as possible, and to seek legal advice if the change could put your right to work at risk. Employers, for their part, should ensure they have up-to-date and accurate information about an employee's right to work before making a dismissal decision, and consider whether there are alternative solutions.