Changing terms and conditions

Take it or leave it?

One of the most popular questions I receive is about changing terms and conditions of employment, in other words changing the contract. It can be fraught with difficulty and often leads to friction between the employer and staff.

Sometimes terms are changed which the employee is in full agreement with, i.e additional holiday, a pay rise or a promotion. It is good practice when changing beneficial terms such as these, that the employer sets out the change in writing. In fact, employers have a legal duty to give a written statement of any particulars of change of the fundamental terms required under sections 1-3 of the Employment Rights Act.

But I rarely get asked about pay rises, promotions or the granting of additional holiday. Questions I’m asked are generally in relation to a change an employee sees as detrimental to them. It could be a change of working hours or days, a pay cut, a sideways move or perceived demotion.

Businesses need to adapt and change with the times and there are genuine reasons why changes need to be made and those changes are not always in the employee’s best interests.

So what is the right way to change a term of employment?