How to change the terms of existing employment contracts

Author: Nick Robertson

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• 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.
• Consider if it may be appropriate to dismiss and re-engage employees who do not consent to the change.
• Consult collectively with employee representatives where required (or appropriate).
• In addition to any collective consultation that might be required, hold individual consultation and dismissal meetings with employees.
• Give employees the required notice of termination of their contracts.
• Offer the employees new contracts containing the revised terms.