Guide

Change an employee's terms of employment

Introduction

You may wish to change an employee's agreed contract of employment because your business has changed - for example, through economic circumstances. Areas you may want to change can include pay, hours worked, different duties or a new workplace.

Sometimes an employee may wish to change the contract, perhaps to get better pay or working conditions, or to switch to part-time working.

Before altering any of your employees' contracts it is important to check exactly what is in the original documents and consult as far as possible with your employees. You should also put any agreed changes in writing to the employee within one month. It is a legal requirement that you do this where the change concerns any of the items that must be contained within the written statement.

Employees of companies with 50 or more employees have the right to request to be informed and consulted about the business they work for under the Information and Consultation of Employees Regulations. In addition, if your business is part of a multinational company, your employees may have the right to be informed and consulted about transnational issues affecting your company.

This guide gives advice on how to manage changes with your staff and outlines your legal obligations.