An employer can make a change ('variation') to an employment contract if: there's something in the contract that allows the change (usually called a 'flexibility clause') the employee agrees to the change; the employee's representatives agree to the change (for example, a trade union) Although not all changes of contract need to be set out in writing, you must give written notification within one month of any changes that relate to the employee’s main terms and conditions, such as working hours or job location. Changing an employee’s contract of employment is not something you can usually do without their consent. If the notice period for the employee to end a contract of employment is extended, the notice period for the employer should be double the notice period of the employee. In Lancia v.Park Dentistry, the Ontario Superior Court confirmed that employers can change the fundamental terms of an employee’s employment, without providing consideration, so long as they take appropriate steps to provide reasonable notice of the change coupled with notice that employment under current terms would terminate at the end of that notice period. Four weeks if employed for more than four weeks. Employees: whose employment contract is a: As such, where an employee is asked to relocate to a different region under the terms of a mobility clause requiring them to work anywhere in the UK, they should still be given sufficient notice to facilitate such a significant move. In other words, you can force the change on any dissenting employee(s). This website uses cookies to improve your experience. DavidsonMorris are experienced employment law and HR specialists. The latter ha… In some instances, employees may even come up with new ideas and alternatives that you may be willing to try. To lawfully dismiss an employee you will need to establish one of five potentially fair reasons as set out under the Employment Rights Act (ERA) 1996, namely conduct, capability, redundancy, breach of a statutory restriction or “some other substantial reason” of a kind that justifies the dismissal. When an employer wants to change the notice period. Further, even in cases where the contract of employment incorporates a flexibility or variation clause allowing, for example, changes to be made to an employees shift pattern or their place of work, you will not have an unfettered right to implement these changes in respect of all affected staff. In relation to any claim for unfair or constructive dismissal, as with other dismissal claims, you must be able to show a fair reason for dismissal and that you acted reasonably in all the circumstances. What Reasonable Adjustments Can I Ask For? The consequences of not doing so are expensive. It is prudent for an employer to implement and update their employment contracts. Providing a written statement of any contractual change That said, pushing ahead with any proposed change in the hope an employee will bow to pressure and keep quiet about it, is likely to leave you exposed to very costly litigation, not to mention serious criticism from the tribunal. You cannot continually extend temporary contracts. Tier 1 Investor Visa (Application Guidance), Approaching employees with your proposal for change, Providing a written statement of any contractual change, Pushing ahead with your proposals without agreement. Below we look at when a change of contract can be made and how this process should be handled, including any risks and common pitfalls involved, as well as the notice requirements necessary prior to any change taking place. By following a consultation process you can also ascertain whether or not there are any objections and, if so, how these can be overcome. Employee notice periods are determined by the contract of employment and the law. You can agree to a change in the length of the notice period. 6183275 A contract of employment is a legal agreement between the employer and the employee. One of the most common problems when dealing with a proposed change of contract is a lack of communication between the parties. It is mandatory to procure user consent prior to running these cookies on your website. Most employees are employed “at-will” and either party can terminate the employment relationship without notice. As Neil W. says, the employee can refuse to sign - a change to an employment contract has to be agreed by both parties just like a change to any other contract. You can insist on a change if it’s covered by a statutory right - for example not working on a Sunday. After the expiry of the legal notice period, the new employer must conclude an employment contract with the worker, through the digital certification service of the employment contracts. Changing Employment Contracts Any “fundamental change” to an employment contract requires careful consideration by the employer. This should take into account length of service, type of job, how long it might take to replace the employee and common practice in the workplace. Any "fundamental change" to an employment contract requires careful consideration by the employer. Don’t include personal or financial information like your National Insurance number or credit card details. By way of example, where you are looking to rely on a mobility clause within an employee’s contract of employment to relocate that individual to a different office or site, the nature of the move and extent of any inconvenience caused will determine what is reasonable notice in the circumstances. As an employer, you can make a change or variation to an employment contract in the following circumstances: Accordingly, in the absence of any contractual provision giving you the right to change a specific term, in most cases you must obtain the agreement of your employee(s), or the agreement of any trade union or other representative, if you want to vary an employment contract on a lawful basis. Talking to your staff at the earliest possible opportunity, and prior to any final decisions being made, can help to facilitate a contractual change that meets the needs of both your business and your workforce. Its terms cannot lawfully be changed by the employer without agreement from the employee (either individually or through a recognised trade union). Statutory or contractual notice period. In particular, when approaching employees with your proposals for change, you should always follow these five basic steps: You may also want to talk with individuals on a one-to-one basis with a view to identifying the reasons why an employee is reluctant to accept any change, exploring different ways in which you may be able to address their individual concerns. These are each dealt with in turn below. A fundamental change results where the terms of employment are changed in any significant way. The former is less risky, keeps employees happier and has a long legal history of being appropriate and permitted. Minimum period of notice E+W+S 86 Rights of employer and employee to minimum notice. Employers. Do we need their consent? Except in certain mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship. Consult or negotiate with employees and/or their representatives, Fully explain your reasons behind making the change, Invite employees to share their concerns and suggest alternative ideas, Listen to employees concerns and consider all their ideas, Elect to work under the new terms, albeit only doing so under protest and treating the change as a breach of contract, Take a case to a tribunal for breach of contract, unfair dismissal, or even. ), How to Write a Constructive Dismissal Resignation Letter, Employee or Worker (What Are Your Rights? Regulated by the Solicitors Regulation Authority No. The notice period for the employee is usually one month. All employees have the right to resign, that is, to terminate their employment contract at their own initiative. This website uses cookies to improve your experience while you navigate through the website. How employment contracts can be ... contract that give employers the right to change some conditions of employment, ... on an employee moving to another country to work with 1 week’s notice. In particular, the absence of any explanation, discussion or consultation on the part of the employer can lead to disagreement and disharmony, and in extreme cases, irreparable damage to the employment relationship. If the employment agreement doesn’t have a notice period, then fair and reasonable notice must be given. You should, however, inform your employee if you do not want to renew the contract. employment contract, see the JobWatch “Employment Contracts” infosheet. The notice that you are required to give an employee to implement a change of contract will depend on the particular circumstances giving rise to the proposed change and the basis upon which the change is sought. The employee must comply with certain formal and notice-period requirements when resigning.. Who is concerned. In the event that you try to force through a change of contract you may find yourself facing a whole host of practical and legal issues in consequence, not least the possibility of defending a tribunal claim. But an employee can insist on a change if they have a legal right to it. A fundamental change results where the terms of employment are changed in any significant way. On the other hand, in circumstances where you are forcing through a change through dismissal and rehire, you will always need to provide the employee with the statutory minimum notice period for terminating their contract of employment. If you have a question or need advice on any aspect of the contract variation, contact us. As set out above, this could either be through reliance on a contractual provision, through mutual or collective agreement, or even forcing through a reasonable change using a process of dismissal and rehire. This can be accomplished in one of two ways, the first being to get employees’ consent and provide consideration for the change. Working together to agree contractual changes in this way can not only help to prevent potential disagreements and disputes from arising, it can also often lead to a more harmonious working relationship moving forward. These cookies do not store any personal information. But an employee can insist on a change if they have a legal right to it. Changing employees’ contractual terms requires careful handling and expertise. You may even want to ask for volunteers where, for example, the change of contract might suit some employees more than others, or offer financial or other incentives, such as relocation costs or time off work where, for example, you are asking employees to change location. Once an employee has been notified of the future change, she is, of course, free to seek other employment, as she would be at any time. You can use the consultation process to explain your business case, answer employee concerns and consider your options. Usually, the employer and employee both need to agree to any contract changes. Similarly, legal disputes can also arise as a result of any unreasonable enforcement of a flexibility clause. It will take only 2 minutes to fill in. When providing written notification, you should set out the precise nature of the change of contract and where to find further information about this, for example, in the staff handbook or on any HR intranet site. Notice period fixed-term contracts. However, neither you or your employer can change your employment contract without each others' agreement. The second is to give working notice of the change and implement that change upon the conclusion of the notice period. Statutory notice is the minimum legal notice that can be given. If there isn’t a notice period in the employment agreement. The employer could, of course, make things like future salary increases conditional on signing the new contract (unless the existing contract specifies some sort of automatic increase each year, which is very unlikely!) In particular, these types of contractual provisions should only be used to make reasonable contractual changes having regard to the individual circumstances of each employee. What legal rights do we have if they are not happy for us to change their employment contract? When should an employee receive a permanent contract? Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Measures will be needed to manage the organisation’s exposure to legal risks and impact on employee relations as a result of varying contract provisions, however minor or positive you consider the changes to be. We use this information to make the website work as well as possible and improve government services. A notice period of a month gives you a reasonable amount of breathing space to recruit a replacement employee. Garden leave Even if you have the right to make changes to an employment contract, you may want to offer the employee something in return as a sweetener. You must also follow a fair procedure, including some form of consultation process and providing employees with the statutory minimum notice period prior to dismissal. To help us improve GOV.UK, we’d like to know more about your visit today. Examples of fundamental changes include, amongst others, a reduction of hours and salary, geographical relocation, or a significant change in the roles and If any company want to change the notice period from one month to two or three months, it can do so but not for the existing employees but for new joinees only. The importance of consulting and communicating with employees and their representatives before making any decisions cannot be underestimated. Examples of fundamental changes include, amongst others, a reduction of hours and salary, geographical relocation, or a significant change in the roles and responsibilities of the employee. In the employment contract, you indicate whether a Collective Labour Agreement (CAO) applies. Don’t worry we won’t send you spam or share your email address with anyone. By mutual or collective agreement, ie; where the employee individually agrees to the change, or where an agreement is negotiated between you, as the employer, with a trade union or staff association. Needless to say, where you are asking an employee to work at a new location within reasonable driving distance of their home, you will not need to give them as much notice as when asking them to relocate to an entirely different region. ACAS Early Conciliation Form (Need Help? The court would probably modify that portion of the contract to instead read the employee “may not work in the same field within 5 miles of the location of the current employment for a period of 12 months.” When seeking to change employees’ terms and conditions, you should first look at their existing contract … By having open, honest and meaningful discussions this should help you to build a better understanding of employee concerns and to consider all available alternative options. Approaching employees with your proposal for change Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Where agreement cannot be reached, as explained above, you may terminate an employees’ existing contract and offer continued employment on new terms. If the terms and conditions of an employment contract need to be changed, both employers and employees should negotiate and try to reach an acceptable agreement, taking into consideration business needs … You’ve accepted all cookies. We also use third-party cookies that help us analyze and understand how you use this website. Changes to a contract of employment. You may also want to talk with workers, asking them about their future plans. We would like to extend the notice period of several of our senior managers. Equally, if you breach the employment contract, an employee might not need to work their notice period. In terms of the Basic Conditions of Employment Act, any party to an employment contract must give to the other written notice of termination as follows: One week, if employed for four weeks or less . A contract of employment is an agreement between you and your employer that outlines the rights and duties of both sides.. At some stage your employer or you might want to change your contract of employment. Employers should be careful if changing a contract of employment when there’s been a business transfer (TUPE). Probationary period. In these circumstances, it’s important employers consider getting legal advice before making a change. As such, to defeat any claim before the tribunal, you must be able to prove that you had a good business case for the change and followed a proper consultation process. The Unfair Dismissals Acts 1997–2015 will not apply if you are dismissed at an early stage in your employment while you are on probation or undergoing training, provided that: The contract of employment is in writing E+W+S (1) The notice required to be given by an employer to terminate the contract of employment of a person who has been continuously employed for one month or more— (a) is not less than one week’s notice if his period of continuous employment is less than two years, We use cookies to collect information about how you use GOV.UK. During the trial period, both employer and employee are allowed to terminate the employment contract with immediate effect. Further, any changes to collective agreements with a trade union or staff association must also be in writing. We'll assume you're ok with this, but you can opt-out if you wish. Notice period and termination of employment. ), There is provision within the contract that allows for the change, often referred to as a flexibility or variation clause, or. If you seek to unilaterally change the terms and conditions under which an employee works, or unreasonably impose changes under a contractual provision such as a mobility clause, that individual may: In circumstances where the employee disagrees with the new terms and conditions but does not say or do anything, arguably this could be construed as their agreement to the change of contract. Further, the more employees you dismiss in this way, the greater your potential liability. As set out above, this could either be through reliance on a contractual provision, through mutual or collective agreement, or even forcing through a reasonable change using a process of dismissal and rehire. Employers cannot make changes without the employee’s consent. 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