The reality of employment is that situations change, and sometimes, an employer may want to amend employment contracts to accommodate those changes. As we continue to proceed into an increasingly unstable economic and employment climate, questions surrounding this matter are going to pop up more and more frequently.
To address these concerns, we’ve put together a quick guide on when a company might be allowed to change contracts, to help both employers and employees to understand their rights and duties.
Can employee contracts be changed?
In general, the answer is that an employee’s employment contract can only be changed with the employee’s consent. Even in the case that the employment contract has a variation clause or some other element to accommodate flexibility, these provisions can only be made use of when the employee in question has been given enough notice, and it is reasonable to enact the provision.
Changes through agreement
Often, the easiest way of changing an employee’s contract is via collective or mutual agreement. This can either happen when the employer enters into negotiation with a trade union or similar organisation, or when an employee directly agrees to proposed changes.
In these cases, it’s not necessary to have any specific provisions in the contract for future changes. It’s enough to simply put specific terms related to the changes to the employee or their union, and then for both parties to agree.
Changes through variation clauses
Some contracts can have variation clauses built into them, which specify that certain changes can be made to the contract. These clauses do not allow an employer to make drastic changes with no notice; they will need to be reasonable changes, and the employee will need to be provided with sufficient notice before the changes are put into place.
For example, some contracts will have a mobility clause that can require an employee to move to another location for work. Even in these cases, they must be provided with enough notice to make the move in a reasonable manner.
Lawful dismissal
If an employer is unable to come to an agreement with their employee, it’s sometimes possible to terminate the current contract and offer employment again based on a new contract with new terms.
It’s important to remember that employees can only be lawfully dismissed if one of the five fair reasons under the Employment Rights Act (ERA) 1996 can be established. These potentially fair reasons consist of capability, conduct, redundancy, breach of a statutory restriction or another substantial reason that can result in lawful dismissal.
For more information on the matter, contact an employment law specialist like the team at Weightmans. Contract law is a nuanced matter that can’t be covered in a single article, and it will generally be necessary to seek advice on your specific situation from a qualified team of solicitors.
