Labour Research (October 2018)

Law Queries

Change in contractual terms

Q. Our employer has told us that if we refuse to accept new terms and conditions of employment we will be dismissed and re-engaged on new terms. Can they do this?

A. Unfortunately, this has become a fairly commonplace practice by employers who wish to change existing contractual terms. So long as the employer gives the required legal notice to terminate the original contract, there is no breach of contract. 


There is, however, still a dismissal, so an employee with at least two years’ continuous service will be entitled to bring a claim of unfair dismissal. Whether it succeeds will depend on the reason and extent of the change, and the overall reasonableness of the employer’s actions. 


If the dismissal and re-engagement affects 20 or more staff and is to take place within 90 days, then the collective redundancies provisions of the Trade Union and Labour Relations (Consolidation) Act 1992 (section 188 onwards) will be engaged, regardless of the fact that the employer wishes to offer what would effectively be immediate redeployment. 


If the employer fails to consult collectively in this situation, it will have to pay a protective award to those employees concerned. 





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