Eleanor Deem

Coaching and mentoring for HR professionals

Changing terms and conditions – to force or not?

I often get asked questions about to what extent an employer can force through a change to terms and conditions. This might involve whether a variation clause in a contract is enforceable, whether a change is justifiable, and what the risks are in imposing a change.

The starting point for any change to terms and conditions is that the individual’s consent is required, but that in certain circumstances, with proper consultation and where there is a sufficient business justification for the change, it can often be forced through, and where the employee has less than two years’ service (therefore could have their employment terminated fairly easily anyway) this is pretty straightforward.

But actually, isn’t it better to take a step back? Forcing through a change will rarely end well, even if you can ‘get away with it’ lawfully. Even if employees don’t challenge it legally, goodwill will be damaged, probably impacting performance, relationships and ultimately staff retention. And is knowledge of your (perhaps) legally robust position much consolation when you’re dealing with a disrupted and unhappy workforce? In those circumstances will the change really be worth the pain involved? Usually not.

So even if this is possible legally I would always seek to find another route if at all possible, and if not, really consider whether the change is as essential as you think it is. Is it business-critical? Will the business suffer immeasurably if you don’t put the change through? Or, if you’re honest with yourself, is it just on the ‘nice to have’ list, and would perhaps just be more convenient and easier for managers if the change went through?

If so, before forcing something through, it’s essential to weigh up whether what you’re looking to do is really, really worth the potential disruption and upset, and to be very realistic about the extent of it. I find frequently people underestimate the impact of disgruntled employees on productivity and performance, and how long that can last.

And if it is genuinely essential, for the same reason consider compromises and incentives for agreement if at all possible. A variation clause that you can rely on legally might protect you in a tribunal but it won’t protect the goodwill you have with staff and the benefits that come with that.

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