Change an employee's terms of employment

Some contracts may contain terms that allow employers to make changes in working conditions. These should be reasonable, for example performing additional tasks to reflect seasonal fluctuations in demand. Do not rely on such terms to make more fundamental changes because your employee may then claim the contract has been breached and may make various legal claims against you.

If you impose changes without an agreement, there will be a breach of contract. If the breach is a fundamental one eg a significant change in pay, an employee could resign and regard themselves as having been given no other choice but to do so. If they have more than one year of continuous employment with you, they can claim unfair constructive dismissal in an industrial tribunal. Damages for financial loss, for example, may also be sought in the civil courts if they have under a year of continuous service with you.

If you want to change terms or conditions in a collective agreement with a trade union that you formally recognise, you should always consult with the Trade Union to reach an agreement.

Consultation should be detailed and undertaken with a view to reaching an agreement and you should fully explain the reasons for any changes.

ICE Regulations

The Information and Consultation of Employees (ICE) Regulations give employees in companies with 50 or more employees the right to request to be informed and consulted about significant developments in the workplace. If 10% or more of employees (subject to a minimum of 15 and a maximum of 2,500) make a valid request, businesses are required to negotiate a procedure for informing and consulting with employees.

TICE Regulations

The Transnational Information and Consultation of Employees (TICE) Regulations give employees in multinational companies the right to be represented on a European Works Council (EWC).

EWCs are designed to allow employees in different European Economic Area (EEA) states to be informed and consulted on transnational issues affecting the company. If your business has 1,000 or more employees and at least 150 employees in each of two or more EEA states, you may be subject to the legislation on transnational information and consultation.

Following the UK's withdrawal from the EU, the government has amended the TICE Regulations so that:

• No new requests to set up an EWC or Information and Consultation procedure can be made by people employed in the UK.
• Provisions relevant to the ongoing operation of existing EWCs will remain in force.
• Requests for information or to establish EWCs or Information and Consultation procedures made but not completed before the UK's withdrawal from the EU will be allowed to complete.

See how to inform and consult your employees.

Consultation can take place on a one-to-one basis or in the form of group briefings. Whichever method you choose, you should provide an opportunity for employees to ask questions. Be prepared to answer these questions and ensure employees have the relevant information they need to prepare for the meeting. Always consider an individual's particular circumstances.