It may be necessary for an employer to make changes to the employees terms and conditions due to financial difficulties or a change in business.
Where the change in terms is considered a positive one with the employee, then the process to apply a variation in the contract may be simple to carry out, however the complications occur where the employees are not in agreement with the changes.
It is vital that the employer consults with the impacted employees.
How to consult with employees
The consultation process is vital. The employer should have planned for this process in advance of the consultation meetings to ensure that they effectively communicate what is being proposed. This includes:
- The reasons for the proposed changes
- Timescales of the consultation process, with letters, meeting dates prepared and scheduled
- Platforms and ways for employees to provide feedback, proposals
Collective consultation may apply where 20 or more employees are impacted by the changes.
The aim of the consultation is to mutually agree a way forward. Where agreement is reached, then the changed terms are confirmed in a variation of contract letter.
Where agreement can not be reached, then the employer would need to consider if this goes to a formal route of dismissal re-engagement.
Entering into conversations with employees to change their terms and conditions of employment can be challenging and has legal risks. It is worth consulting with your HR and legal teams to provide guidance on this technical process.
At Nockolds HR we can provide information packs to support your business with this process. Our Team of HR Consultants can attend your workplace to provide guidance, and sit in on the individual meetings or group consultation meetings.
For more information contact our team on 0345 646 0406 or email enquiries@nockoldshr.co.uk.