Such housekeeping exercises also give employers the chance to ensure that their standard contracts are:
- Legally compliant.
- Appropriate to the size and structure of the business
- Providing a reasonable level of legal protection for the employer
When making formal changes to an employment contract, the employer has three principal options:
- To seek agreement to the changes and dismiss those employees who refuse to agree. The employees who are dismissed may have claims for unfair dismissal and (if the employer does not serve notice) breach of contract
- To terminate the existing employment contracts and offer re-engagement on the new terms. The employees may have claims for unfair dismissal and (if the employer does not serve notice) breach of contract, but the offer of re-engagement may mitigate their loss. In addition, there may be collective consultation obligations
- To impose the changes and leave it to the employees to decide how to respond. This may result in claims of constructive dismissal in addition to other claims
Whenever a business changes terms and conditions for its employees it can cause a period of unease. Making sure you undertake the correct consultation procedure can alleviate some of the strain. Our solicitors can assist you with all stages of changing your business’ employment contracts. We can draft the terms and conditions, assist you with consultation and support you through any disputes that may occur.