UK Employment Law\ Employer \ Variations in Contract
Variations in Contract.
Sometimes conditions in business change, which means that an employer needs to change the way the company operates, and how the staff work too. This is often accomplished by altering the terms of employment. However, under English Employment Law, an employer does not have an automatic right to vary these terms.
A good employer will usually consult with staff before any such changes are made. Though when it comes to making decisions about altering an employee’s terms, the extent to which a boss can do this unilaterally depends entirely on what those terms actually are.
The ability to make changes can come down to how flexible the original contract is. Does it contain the appropriate machinery?
A staff handbook can often be referred to in agreements – and they can be issued from time to time with alterations in the clauses.
However, if there is no flexibility, then a boss must follow procedure if he or she wishes to make changes to staff contractual terms of employment. If procedure is not followed, then it can open up the possibility of claims for damages and/or compensation.
Who can change an employment contract?
Any party involved in a contract can seek to change it. This means either the employer or employee is within their right to ask for alterations. However, neither can change it without each other's agreement. Changes can be made by negotiation and:
- agreement between employee and employer;
- collective agreement between employer and a trade union or staff association;
- implication (a change in practice)
Reasons for changing an employment contract
An employer sometimes has to alter the terms because of economic circumstances. This might be through reorganisation, relocation or new laws and regulations. The recent recession has seen many organisations, large and small, take such a course as a way of saving money, and thereby ensuring their survival.
The employer might attempts to alter:
- rates of pay;
- working times;
- duties and responsibilities;
- work location.
An employer might need to change a contract to correct a mistake made when the original was drawn up. It is often in an employee’s best interests to allow the correction.
Sometimes the contract might be altered to allow for a demotion or pay cut (as a disciplinary measure). An employee should check his/her employer’s disciplinary procedures to be sure. If there is still doubt, contact a solicitor or a union representative.
How to offer new terms to an employee.
An employer should offer new terms either orally or as a written document. At this point, an employee can either give a positive, unequivocal and unconditional acceptance or he/she can reject them. Though there is no particular way of accepting the offer laid down in law, an employee cannot be deemed to have given his/her acceptance by doing nothing. Inaction can only amount to accepting new terms if the contract of employment lays this down as one of the terms (ie: 'If you do not object in writing within 14 days you will be deemed to have accepted). On the other hand, it can be deemed that an employee has given his/her acceptance to new terms by manner of conduct. If the employee acts differently to comply with a new term, it will be assumed that he/she has accepted.
Of course, the best way to offer new terms is within a written letter. If the employee agrees to the terms, then they sign the bottom of the letter and hand it back to you. They should also keep a copy for their own records.
