Rigby v Ferodo Ltd
UK legal case
Rigby v Ferodo Ltd [1988] ICR 29 is a UK labour law case concerning the contract of employment. It held that if an employer reduces wages without a worker's consent, the worker may continue to work and claim the shortfall.
Facts
Ferodo Ltd cut wages by 5% to stay afloat. The trade union agreed not to strike. Mr Rigby, who worked as a lathe operator on £129 a week with a contract terminable on 12 weeks’ notice, made it known he did not accept the wage reduction. For him this was approximately £30 a week. He continued to work and after over a year, he claimed for shortfall.
The judge held there was a unilateral variation of the contract, which amounted to a breach, and so Mr Rigby was entitled to damages. The Court of Appeal agreed. Ferodo Ltd appealed to the House of Lords.
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