Making contractual changes
Making contractual changes
If an individual needs any contractual changes to be made, a formal process of consultation must be followed. This still applies even if the employee may or may not suffer detriment as a result of the change. Both the employer and employee both need to come to an agreement on any contractual changes. However, an employee can request a change if they have a legal right to it.
An example of a contractual change could be an employee’s hours or pay. This could be a result of an employer needing to re-organise their business due to economic circumstance. An employer could also speak with more senior employees to discuss their future plans at the business. This could involve changes to their working pattern, role or even the option of retiring early.
Contractual changes – Employers
If you are an employer and are looking to make changes to your employee’s contract, you must consult with the employee or their representative (someone from a trade union or staff association). The changes in the contract must be explained to the employee so they are aware of what is being made different. Also, the employer must ask the employee if they have any alternative ideas to the contractual change.
Contractual changes – Employees
If you are an employee and what to make changes to your contract, you need to speak with your employer and inform them why the changes are necessary. As an employee, you can insist on a change if its covered by a statutory right, such as flexible working.
Once the changes have been made to the contract, the employer must write to the employee within a month to let them know what has changed. The employer must also update the terms of their employees written statement of employment conditions. If the employer changes the employee’s terms and conditions that aren’t in the written statement, they must tell their employees where they can find the changed information. This could be in a company handbook or intranet site.
If an individual starts working for a different manager, they will receive their written statement within 2 months. A new written statement doesn’t need to be issued if there is a new manager and there are no changes in the terms and conditions. This is the exact same if the name of a business changes. However, the employer will have to write to their staff within a month to let the know of the changes.
The only time changes to an employee’s terms and conditions can take place is if there is a disciplinary. An example of this could be a demotion, as the employee’s role will change and so may their hours and pay.
If you have a tricky situation where you need advice on how to handle contractual changes in more detail, please contact a member of the HPC team on: 0844 800 5932 or email: email@example.com.
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