Changes without consent

Case 4: The facts

Asda wanted to amend the pay structure of some employees to bring them into line with the others. Following extensive consultation, most staff agreed. Asda imposed the new terms on those who did not agree, relying on a provision in its staff handbook which said that it “reserved the right to review, revise, amend or replace the contents of this handbook, and introduce new policies from time to time reflecting the changing needs of the business”. The handbook was incorporated into employees’ contracts of employment. Six test claimants brought claims for unauthorised deductions from pay. They lost their claims and appealed.

The ruling

The Employment Appeal Tribunal rejected the appeals. The handbook wording was wide enough to allow Asda to make the changes without employees’ express consent.

Commentary

This decision has rather alarming potential. Importantly, case law states: “clear language is required to reserve to one party an unusual power of this sort. In addition, the court is unlikely to favour an interpretation which does more than enable a party to vary contractual provisions with which that party is required to comply”.