UK Employment law news - Salary-cutting speech attacked by SOLACE

By JMW @ Oct 21, 2008 in Employment Law

The call made by Vince Cable MP to force the highest-earning civil service employees to reapply for their positions at lower salaries has been called into question under UK employment law by representatives of public sector management.

The Society of Local Authority Chief Executives and Senior Managers (SOLACE) called this speech, made by the Liberal Democrat Treasury spokesperson during the party's conference this week, "posturing at its worst."

Cable stated that targeting the top-level executives was the correct method of reducing public sector spending, calling redundancy and pay cuts for lower earners the "coward's way." However, a former chief executive from a Liberal-controlled council is reported to have said of this proposal that "It would discourage senior personnel from working in local government, de-motivate them and I'm not even certain that it is compliant with current employment laws."

Cable also challenged MPs to face pay reductions, saying "politicians cannot lead a crusade against self-servicing public sector extravagance unless they lead from the front; so MPs and Ministers must accept deep cuts in numbers and fringe benefits like pensions."

Lindsey Bell, partner in employment law at JMW Solicitors, warned that, "Senior civil servants are likely to have enforceable terms of employment that could give grounds for claims of wrongful dismissal and constructive dismissal if the proposed policy were not to be implemented with great care."