HR Update - Changing terms and conditions
Jacqui Mann
Sunday, February 8, 2015
There is a difference between contractual and policy changes, so care should be taken with them, says Jacqui Mann of HR4 Nurseries.
I am often asked if it is possible to change contractual terms and conditions of employment. The answer is yes, but you will to need to consult with employees and get them to consent to the changes.
First you need to consider if the proposed changes are contractual or a change in policy. Policy changes are not in the contract but are in the handbook - for example. a change in the dress code. This may be implemented without obtaining agreement from the employees.
If the change is contractual, then agreement will be needed to implement the change. A contractual change might be, for example, a change in the working hours. If you don't get agreement you could face an employment tribunal claim.
There are a number of ways to achieve change
- Consult with the employees concerned or with employee representatives.
- Explain the proposed changes.
- Discuss the reasons behind the change.
- Explain what will happen if the changes do not occur.
- Ask employees to raise their concerns and put forward suggestions.
I would recommend a minimum of 30 days consultation but this depends on how many employees are involved and what the changes are.
If the employees will not agree to the changes then you may have to impose the change. This should really only be used as a last resort. If the change is fundamental, it may amount to a breach of contract entitling the employees to:
- resign and claim constructive unfair dismissal
- make it clear that they object to the change but continue to work
- claim breach of contract and damages for loss
- make an unlawful deduction of wages claim, if the change results in pay reduction.
If an employee does not accept the changes then the original contract needs to be ended. You will need to give contractual notice and then immediately re-engage on the new terms and conditions. This is not without risk and you would need to take HR or legal advice. By bringing the contract to an end you are in effect dismissing the employees and m
ust be able to justify your decision on the basis of some other substantial reason.
If the employees agree to the change, they need to sign an agreement confirming they accept the new terms. This is then put in the employees' files. Any variation must be recorded in writing within one month of the change to comply with the Employment Rights Act 1996.
