UK Employment Law\ Employer \Contract Law
Dismissal under employment contract
Sometimes it is necessary to bring in new employment terms. In some cases, the employer will dismiss the worker and then offer new terms under a new contract. This happens if the worker refuses to accept new contractual alterations under the former contract. However, this could leave the employer liable for the following:
- breach of contract;
- unfair dismissal;
- unfair redundancy.
So, employers must be sure that they follow the correct procedures and have strong and appropriate reasons for dismissal.
Employer’s breach of the contract.
When the breach is committed by the employer, then there are two avenues open to the employee:
- accept the breach and move on;
- do not accept the breach and resign.
This website deals with termination of employment in other sections, but it is advisable to seek the help of a solicitor before taking any course of action that could end up with a tribunal case.
It is important to remember the following:
- You can only change an existing employment contract if both employer and employee agree.
- A full consultation process must be held with an employee over any changes proposed to a contract.
- If you do agree any changes that affect the written statement of employment, then you must supersede the former agreement with a new written contract within one month of any alterations.
Terms which allow changes
- A contract of employment can be drafted in order that reasonable changes can be made within the terms of any existing agreement.
- An employer can alter an employee’s duties if there is provision written into the original employment contract.
If an employee does not accept proposed changes
You can avoid going to court or a tribunal by dismissing the employee. However, make sure that you give them proper notice, then offer them a new contract. Failure to follow procedure can lead to legal problems. Consult with a solicitor before making any changes – or risk breach of contract.
Breach of contract
This is when you change the terms without the agreement of the employee. If the employee continues to work under any changes, but does not lodge an objection, then they are legally accepting the changes. However, if the employee treats the breach as ending their contract, then they are entitled to claim for constructive dismissal.
This area of law is fraught with pit-falls which many companies make. Sometimes the most basic errors are made by the larger organisations. There is plenty of professional advice around to help you change terms of a contract without causing a costly breach. The best way is to talk to a solicitor.
