An employment contract is a legally binding agreement between an employer and a worker (Suff, 2022b). A modification to the terms of an employment contract may expose employers to legal issues or even cause grave concern among the affected employees. Therefore, the agreed-upon terms and conditions may be changed, but only with the consent of both the employer and the employee (Acas, 2020a). In certain situations, the employer may have a contract with a trade union that permits the union to negotiate and reach agreements on specific contract revisions on behalf of workers and employees.

How to change employment contract terms 

Most of the time, unless the contract contains a special flexibility clause, employers cannot legally alter contract conditions without first obtaining each employee’s consent. The flexibility clause, also known as a variation clause, that is being invoked must allow the employer to modify the specific phrase at issue (Acas, 2020b). They must consult the person’s employment contract to determine whether they have the legal authority to make the adjustment. When a relevant clause is found, the parties must determine whether the meaning of the term supports the change and whether it contains any additional clauses or requirements, such as the necessity for the proper notice of the alteration (Acas, 2020b).

The new phrase should be added to the employment contract if the employee agrees to the change in contract conditions, and you should give the employee a copy of the updated contract within a month (Acas, 2020b). On the other hand, if a flexibility clause in the contract allows for the change and it is reasonable under the circumstances, the employer may technically implement the change even if the employee rejects it if the change is permitted under the clause (Acas, 2020b). Additionally, the employer may insist on the modification if it is permitted by a statutory right.

Redundancy laws

When a company opts to tone down the number of employees, it carries out forms of dismissal known as redundancies. Only when the employer requires fewer individuals to perform a specific type of work or anticipates that the need for employees has lessened does a real redundancy occur (Suff, 2022c). Employers must show that a position is truly redundant, go through a fair consultation process, and decide whether there is enough alternative employment before they can fire an employee for redundancy in a fair way. If the necessary requirements are met, an employee who is terminated due to redundancy may be entitled to redundancy pay (Suff, 2022c). Employers are obligated to follow the proper steps and pay for notice periods and redundancy in the event of true redundancy.

The employee may be able to prove there was no justification for their dismissal at all if the company claims there is a real redundancy when there isn’t. Employers in the UK who do not adhere to the correct procedures risk being accused of unfair dismissal. Through statutes and case law, the intricate redundancy laws define both the obligations of employers and the rights of employees (Suff, 2022c). For instance, removing a person from their position is intrinsically unfair for a number of reasons, including: union membership or lack thereof, part-time employment, maternity- or pregnancy-related factors or any of the protected characteristics (Equality Act of 2010).

Transfer of undertakings (TUPE)

There occurs a transfer of undertakings (TUPE) when an organisation is transferred or a service is altered. When a business passes to a new owner in one of these “relevant transactions,” the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) ensure UK employees’ rights to the same terms and conditions, with continuity of employment, as they had before the transfer (Suff, 2022d).

Business transfers

TUPE is applicable when an “economic entity that keeps its identity” is transferred. The reasons below also apply;

• The “transferee” run the same kind of business as the “transferor”
• The activities carried before and after the transfer are similar in one way or another
• Most of the clients and workers been transferred (Suff, 2022d).
• The transfer involved intangible items such as copyright, trademarks, goodwill or patent.

It has been determined that TUPE is applicable to mergers, asset-based business sales, licensee or franchisee changes, inherited business gifts, and transfers from enterprises that are under administration (Suff, 2022d). Employers should proceed cautiously and be upfront and transparent about the reasons for the change because forcing changes upon employees can be bad for employee relations. The employee should discuss any concerns they may have with you as soon as possible, ideally during the consultation and discussion stage (Suff, 2022d). If informal negotiations fail to resolve the issue, the employee may decide to file a grievance in accordance with the organization’s internal grievance procedure. They could choose to resign and allege constructive dismissal or they could decide to refuse to work under the new circumstances.