Labour Research June 2005

Law Queries

Removal of shift allowance

Q: One of our members was asked do a different job by management about six years ago. She did not sign anything at the time but has been doing the job ever since. She was paid shift pay before she was transferred, and the company has continued to pay her this even though she only works days.

She has now been asked to sign a form that will remove her shift pay over a period of time, and the management want her to stay in the same position. Can anything be done to retain her shift pay?

A: As it was not agreed at the time that the transfer to the other job was temporary, or that the shift allowance would be phased out at some point, it seems that there has been a variation to your member's contract to which she agreed. Her entitlement to shift pay must have remained part of her contractual entitlement, as she has continued to receive it for the past six years.

To remove the allowance now would be a further variation to her contract. For this change to be lawful, she would have to agree to it (which is why management have asked her to sign an agreement). If she does not agree and they remove the allowance anyway, this will be a breach of contract. The remedies will be the same as in any other case where the employer is trying to change terms and conditions.