Termination Clause in Contract CORONAVIRUS

[ecalid]

Hi guys.

My other half is currently worried at the situation with work. She works in a fast food outlet in a big uni campus and they have announced today that due to the coronavirus the uni is continuing with E-learning only, which means footfall will be reduced to staff only at the very best.*

She is a manager of the store and it is franchised by a global catering company. She has noticed lately that there has been a huge drop in foot fall due to the corona virus and is worried that the store may have to shut as it will not be making any money.

She is on payroll with salary and her contract does not state anything about being laid off.

However...

In her contract it does say:

"The company reserved the right to terminate your employment with notice at any time" this being subject to working with the company for less than 5 years.*

The clause states she would be entitled to 4 weeks pay.

We are abit concerned that it is an express term that the company may wish to rely on instead of laying off its staff and then renegage the staff at a later date when this would be economically viable.*

Nothing has been mentioned by the company yet so given the circumstances I will grant that this is maybe a panic reaction. However. To help put her mind at rest has anybody got any input on this???

Thanks in advance!!

*

[ULA]

Hi, these are worrying times!*

In terms of the clause it is pretty clear that with less than 5 years service they can end the contract by the giving of 4 weeks pay, however I am trying to work through whether, given UK employment legislation, this is actually enforceable.*

Sorry I do not have the answer off the "top of my head" at the moment so need to do some more research before getting back to you.*

*

[ecalid]

Thank you Ula.*
*

[ULA]

Hi @Eclaid, sorry not to get back sooner I was struggling to find research to determine the legality of that clause and events have rather overtaken us now.

So in regard to the clause I have nothing definitive but I am struggling to see, given that after two years, an employee has employment protection rights that they can terminate without following a disciplinary procedure or redundancy programme without it potentially being an unfair dismissal.

Not sure what your partner's situation is at the moment but if there are still concerns I hope that given the government have since announced the job retention scheme* that your partner's company could use this to furlough staff if the need arises.*