Advice lusi- is she obliged to grant the salary increase


Problem

Lusi employs 15 staff at her pub & restaurant "The Rare Grill". All of the staff are on 12-month renewable contracts. Two of the wait staff, Jeorgie and Neve, have been asking Lusi for a few months for a salary increase. Lusi explains to the two girls that she cannot afford to increase staff salaries since the restaurant is about to expand and all extra funds from business operations will be going towards that purpose. Just before lunch time on Sunday, which also happens to be Mother's Day - one of the busiest days of the year for the restaurant - Jeorgie and Neve tell Lusi that they are walking out. The restaurant is already understaffed for the lunch service. Lusi is left with no alternative but to agree to the two girls' salary increase request. She assures them that payroll will adjust their pay starting the coming week. The next day, Lusi appears to change her mind about their salary increase.

Advice Lusi: is she obliged to grant the salary increase? You must discuss the issue of whether the Jeorgie and Neve are guilty of duress.

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Business Law and Ethics: Advice lusi- is she obliged to grant the salary increase
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