How to change the pay method for employees
Author: Karen Teago
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- Be aware that a change to the method of pay will be a variation in the terms of the employment contract and cannot therefore be imposed unilaterally.
- Plan a strategy at the outset of the exercise, in particular if it may be necessary to dismiss and re-engage employees to impose the change to their contracts.
- Understand that the change may be void if it is necessary to harmonise terms between two groups of employees following a TUPE transfer.
- Consider the impact on employees of the proposed change and how to mitigate this.
- Set out clear and legitimate business reasons for the change and explain these to the employees.
- Secure the written agreement of each employee to the change.
- If the strategy includes dismissal and an offer of re-engagement to any employee who refuses to agree to the change, give the employee the correct contractual notice of dismissal.
- Comply with the duty to consult with employee representatives if dismissing and re-engaging 20 or more employees.