Search

How can we help?

Icon

What exactly needs changing? Re-organisations and contract terms issues for HR

It is a frequent issue for HR that a decision is made to carry out some organisational change that impacts all or any of working hours, shift arrangements, rates of pay, duties to be carried out, and other similar matters that not surprisingly make employees feel unsettled or, in some cases, militantly opposed to the employer’s plans.

It is generally a legal question what steps may be needed to implement such changes, and whether individual contracts or union agreements need to be altered by agreement or unilateral imposed change/new contracts.

However, HR in assessing the scope to implement changes, and how far they can go without contractual changes, need general understanding of the distinct categories of existing arrangements:

  1. Working practices, which ought normally to be capable of reasonable unilateral change after appropriate consultations;
  2. Contract terms, which may or may not be subject to a contractual right to vary the terms, but in absence of variation rights may need to be terminated with an offer of a new contract;
  3. Collective agreements, express or implied by custom and practice, which very likely have some terms incorporated into individual contacts, meaning again that contracts may need to be terminated/new contract offered, carrying special risks of conflict with trade union rights. It pays to sort out what union agreements are in force and what they cover as good HR housekeeping, not waiting till there is a re-organisation to handle.

HR professionals need to be very alive to all possibilities when deciding what approach to take to consultations or union negotiations. It may worsen the employer’s position if talks with unions or employees are opened on an assumption that contracts need to be altered when as a matter of law on the particular facts that may not be required. This may be later alleged an admission by the employer that it cannot vary the contracts or work practices.

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

R professionals need to be very alive to all possibilities when deciding what approach to take to consultations or union negotiations.

The other side of the coin is the error of talking for a long time about making changes without appreciating there needs to be a formal statutory consultation, opening up protective award risks and of course possibly causing a detrimental delay when it is realised that a genuine and thorough legal consultation process has to be formally established and completed first.

In short, getting the facts clear at the outset is the thing to do. HR professionals will be relied on to do that and steer the process down the right pathway. Even legal input will be inadequate till the issue has been properly tested as to what the employees’ contractual rights are and where they come from.

The best tip is to know contract flexibilities, or lack of, at all times and not just when you really need to know!

Michael Sippitt

Director

Forbury People Limited

About this article

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

Pub
  • 26 March 2024
  • Privacy and Data Protection

AI Podcast: AI and Data Security

In the third and final podcast in our ‘AI Podcast’ trilogy, members of the data protection team, will be discussing how to use AI to process data safely. They will be looking closely at the risks for businesses and the types of data security protections you can put in place.

art
  • 26 March 2024
  • Privacy and Data Protection

Key considerations for data retention policies

In the ever-evolving landscape of data protection regulations, data retention stands as a crucial aspect of compliance and risk management for organisations across industries.

art
  • 21 March 2024
  • Immigration

What is a right to work share code?

A right to work share code is a unique 9-character alphanumeric code generated via the UK Government website. This initiative has been implemented by the UK Government to verify an individual’s right to work online.

Pub
  • 21 March 2024
  • Employment

TUPE Podcast Series: Who Transfers?

In this fifth podcast in our TUPE Podcast Series, Amanda Glover will be focusing on ‘who transfers’ under TUPE. Looking at the definition of ‘employee’ under TUPE legislation and the tests that apply in deciding if those employees transfer.

art
  • 20 March 2024
  • Employment

Changes to Employment Laws from April 2024 – are you ready?

There’s a large number of employment law changes coming in April which are set to shake up the workplace. It’s crucial for employers to stay informed and prepared.

art
  • 19 March 2024
  • Employment

Instant Messaging in the Workplace: Factors to be aware of

Workplaces have changed beyond recognition in the four years since the first COVID-19 lockdowns. This anniversary represents an opportunity to look back at how workplaces have changed in that period, from the increased use of flexible and hybrid working, to the continuing and significant integration of more technology in office-based work.