Page 24 - BOSS Today Issue 48

BOSS Today #48 DOWN TO BUSINESS

LINE MANAGERS’

GUIDANCE – CHANGING

EMPLOYEES’ CONTRACTS

mployers may wish to change Avoid the risk of discrimination claims: Use collective bargaining: If the employer
Eemployees’ terms and conditions of Employers should consider the potential recognises a Trade Union, they should
employment for a number of reasons: for ‘knock-on’ effects of contractual changes, attempt to negotiate the contractual
example, it might be necessary to reduce such as risks arising under discrimination change under the terms of any collective
pay or levels of benefits to cut costs, or or equal pay legislation. bargaining agreement in place.
to change employees’ duties to reflect
the fact that the employer’s business has Consider TUPE (Transfer of Implement the variation in writing: To
moved on. Undertakings, Protection of implement the variation, the employer
However, varying employment Employment): Employers should check should send each employee a letter
contracts can be problematic, particularly their employees’ work history. If they setting out the changes, advising when
in the face of opposition from employees. have transferred to the employer under they will take effect and requesting
Where the change is clearly beneficial to TUPE, their terms and conditions will be confirmation.
the employees, the variation of contract protected to some extent.
is unlikely to result in any challenge Finally, consider dismissal and re-
from them, but the employer should Be aware of the risks of a unilateral engagement: If employees refuse to
still understand the legal implications of approach: Varying employees’ terms and consent to a variation and there is no
taking this action. conditions unilaterally can be extremely clear flexibility clause in their contracts,
BOSS has an online guide that explores risky, unless the changes are clearly non- the employer has the option of dismissing
how employers can achieve their goal contractual or where a flexibility clause and re-engaging the employee, but only
while minimising legal risk, which covers applies. after a proper process of consultation has
in detail the following key points: taken place.
Beware of ‘Stand and Sue’ claims: There
Consider the reasons for the change: The are two claims that employees may be
employer should give careful thought to able to bring if they ‘Stand and Sue’: the
the reasons for the change. It is important most common is for breach of contract; BOSS members have access to a
that the employer satisfies itself that it the other is for unfair dismissal. library of documents and guidance
has a genuine business reason for varying on HR, click here for further
contractual provisions. Try to obtain express agreement to the details. We have a wealth of online
change: Obtaining express agreement to templates from draft policies to
Consider the timescales: The timing the change is normally the safest option checklists and guidance.
of the process could be one of the open to employers, although it may not
employer’s most crucial considerations, be the most straightforward.
depending on how urgently the change
needs to be implemented, what Communicate and consult:
the changes proposed are and how Communication with employees is key to
cooperative the employees prove to be. obtaining their consent to the variation.

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