How to change the terms of existing employment contracts

Author: Nick Robertson

Summary

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• Be clear about the reasons for making the change and ensure that there is a genuine business reason for it.
• Think about the process that will be needed and plan how long it will take.
• Consider whether an obligation to consult collectively could arise.
• Check if the employees' have been subject to a TUPE transfer.
• Check if there is a contractual clause that authorises the change, but be aware of the limits of this approach.
• If operating a contractual clause that authorises the variation, consult employees and act reasonably.
• Keep in mind that obtaining the employees' express consent will always be the safest way to make contractual changes.
• Ensure that the changes and the reasons for them are fully communicated to employees, whether or not you need their consent.
• If employees consent to the change, confirm the new terms and conditions to them in writing.
• If employees do not consent to the change, as a last resort, consider if dismissal and re-engagement may be appropriate.