For employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers., if the change is to certain core terms of work, you are legally required to confirm the changes in writing as soon as you can, and within a month in any event. See Q&A 3 for a list of the core terms that require this. It is good practice to document any changes in writing regardless of whether you are legally required to do so, as this will help to avoid confusion or disagreement later down the line. See Q&A 14 for guidance on how to document changes to staff contractsThe agreements under which staff members work, which may be contracts of employment, contracts with an agency or agencies which they are supplied by, or contracts to provide services to the employer..

For staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. other than employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers., there is no legal requirement to formally record a change, although it is always a good idea to record anything other than very minor changes to staff contractsThe agreements under which staff members work, which may be contracts of employment, contracts with an agency or agencies which they are supplied by, or contracts to provide services to the employer. in writing. See Q&A 20 for information about making changes to freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. ' contracts and Q&A 21 for casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

For template letters you can use to confirm changes in writing, see Letter to staff member amending contract, Letter to staff member confirming change of work location, Letter to staff member confirming pay increase and Letter to staff member confirming promotion.

For employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers., if the change is to certain core terms of work, you are legally required to confirm the changes in writing as soon as you can, and within a month in any event. The relevant core terms are:

1. the name of the employerA person or business hiring one or more staff members.;

2. job description or job title;

3. the place of work;

4. the amount of pay and the intervals at which it is paid;

5. working hours, including the days of the week worked and whether working hours or days vary and if so, how;

6. holiday entitlement;

7. sick leave and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability. entitlement;

8. details about any other paid leave (eg maternity or paternity leaveA period of leave from work available to certain staff members in order to care for a new born child or support the child's mother.);

9. pensions;

10. any other benefits;

11. the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. to end the contract (for either party), or the end date if the employment contract is temporary;

12. details about their probationary periodA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice., including any conditions attached to it and its duration;

13. disciplinary and grievanceA concern, problem or complaint which a member of staff raises with his employer. process including appeals procedures;

14. any training entitlement provided, including mandatory and non-mandatory training and (if mandatory) who bears the cost of the training;

15. any requirement to work outside the UKUnited Kingdom of Great Britain and Northern Ireland for more than a month at a time, including how long they must work abroad, the currency in which they will be paid and any additional sums payable by reason of the work abroad. This information must be provided by the time your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member leave the UKUnited Kingdom of Great Britain and Northern Ireland; or

16. any collective agreements Agreements that are negotiated with a trade union or other employee representative that affects the terms of the employees' contracts. which affect the terms of the contract (note that information about collective agreements Agreements that are negotiated with a trade union or other employee representative that affects the terms of the employees' contracts. is currently outside the scope of this service).

See Q&A 14 for information about how to document the change to an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract and Q&A 21 for information about how to document the change to a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s contract.

There are certain matters that must be formally recorded in writing if your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.; see Q&A 3 for information about this.

Otherwise, not all alterations to your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members' working arrangements will require a change to the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member’s contract. For example, minor changes to responsibilities which still fall within the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member’s job description will not necessitate a change.

In addition, matters that are dealt with in your staff handbookA staff handbook is a manual provided to employees by an employer which usually contains information about company policies and procedures., if you have one, and are not part of your staff contractsThe agreements under which staff members work, which may be contracts of employment, contracts with an agency or agencies which they are supplied by, or contracts to provide services to the employer. will need to be updated in your handbook but not in your contracts; see Staff handbook for further information about what should go into your staff handbookA staff handbook is a manual provided to employees by an employer which usually contains information about company policies and procedures. and Staff handbook and policies for a template handbook you can use.

You may want to alter your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members' contracts in response to the changing needs of your business or as part of a restructuring exercise. For example, if you suffer a decline in business you might consider cutting staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. pay and benefits, or if your peak trading hours change you might need to vary the core hours your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. work in order to meet demand.

You can do this, but you need to be particularly careful to follow the correct procedure; see Q&A 11 and following for information about the procedure for changing employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. contracts, Q&A 20 for freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. and Q&A 21 for casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

Note that your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. – in particular – have certain minimum legal rights that you cannot take away, even if you they expressly agree to it in their contract (such as sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability. and paid holiday). See Employees and Casual workers (including zero-hours workers) for full guidance about the rights that these staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members have.

Yes; a change to a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's job description, title or pay should always be recorded. If your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., you are legally required to confirm the changes in writing as soon as you can, and within a month in any event.

If their promotion to a more senior role means that you want to include clausesProvisions or sections. Usually in a contract. to protect your business if your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. leaves (eg non-competition and non-solicitation clausesProvisions or sections. Usually in a contract. ) it is crucial that you amend the contract properly to include these, or you will not be able to rely on them later. See Confidentiality and restrictive covenants in employment contracts for more information about these clausesProvisions or sections. Usually in a contract. .

For a template letter confirming an increase in pay, see Letter to staff member confirming pay increase. For a template letter when an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s contract changes due to a promotion, see Letter to staff member confirming promotion.

When the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. and the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. are updated (as happens every April), you will need to amend the pay of any staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who are entitled to them (for guidance about who is entitled, see Staff pay). You must also do this if a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member changes to another national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. bracket or to the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage..

You should confirm a change in a letter to the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member. Note that if they are an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., you are legally required to confirm the change as soon as you can, and within a month in any event. For a template letter you can use to do this, see Letter to staff member confirming pay increase.

You must be very careful when considering a change to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’ contract terms if you have any staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who have come to work for you as part of a business transfer or service provision change, or if employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are transferring away from your business for this reason. These staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. may be referred to as being part of a TUPE transferA transfer of an employee between employers to which the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply. - a reference to the Transfer of UndertakingsPromises to do or not do something, commonly contained in a contract. (Protection of Employment) Regulations 2006 which protect their rights (see TUPE transfers for more information).

The contracts for these employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are normally protected indefinitely from change where the only or main reason for the change is the transfer itself. This means that, if you have TUPE transferredTransferred between employers in a way which means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply. employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., you cannot change the terms of their contracts once they have transferred to you simply to bring them in line with your other staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.; they must be allowed to retain the terms they had before. This is usually so even if the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. concerned agree to your proposed changes. Equally, if the transferring employerA person or business hiring one or more staff members. varied transferred employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts prior to the transfer where the only or main reason for the change is the transfer itself, those variations may also be voidNot legally binding. (even if they are beneficial to the transferred employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.). For full details of special staffing considerations around TUPE transfersTransfers of employees between employers to which the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply. and practical options where you wish to later change the terms and conditions of such staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., see TUPE transfers.

Yes, but how you do this depends on what their contract says.

If your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's contract contains a clauseA provision or section. Usually in a contract. allowing you to change their place of work (known as a mobility clauseA clause in the employment contract which allows the employer to change the employee's place of work without the consent of the employee.), you can exercise this and make their change without their agreement. However, you must be reasonable when doing so. For example, you should at the very least give your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member reasonable notice so that they are able to comply with the change. It might also be prudent to consider offering financial assistance to help affected employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to adapt to the change.

See Q&A 16 for more information about making changes under this type of clauseA provision or section. Usually in a contract. . For a template letter you can use to confirm a change after you have exercised your right to make it, see Letter to staff member confirming change of work location.

If the contract does not contain such a clauseA provision or section. Usually in a contract. , see Q&A 11 and following for the process you must follow for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and Q&A 21 for the process you must follow for casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

Yes, but how you do this depends on what their contract says.

Your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's contract may include a variation or flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. giving you a general power to change their hours or work patterns. However, even where you have such flexibility in the contract, you must still act reasonably in doing so. It is therefore generally best practice to consult with your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and attempt to seek their consent (in writing if possible) to any changes to their working hours. If an affected staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., you must confirm in writing any changes made to their contract a soon as possible (and within one month at most).

If your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's contract does not contain such a clauseA provision or section. Usually in a contract. , see Q&A 11 and following for the process you must follow if they are an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and Q&A 21 for the process you must follow if they are a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker..

Note that if you want to temporarily reduce your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's working hours (eg from five working days per week to four days per week during a period of reduced demand for your services, known as short-time working), you may still be legally required to pay the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member a set sum for the hours temporarily no longer worked. This is called a guarantee(1) In the context of debt, a contract where someone agrees to pay if the debtor cannot pay themselves. (2) In the context of sale of goods, a promise to a customer which is given freely (without charging extra money) that the goods they are buying will meet certain standards, and if they do not the person making the promise will do something to make up for that (eg give a refund, or repair or replace the goods). payment, and applies only to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.who have been with you for more than a month. The maximum sum payable for an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is usually full-time is £39 per day for up to five days in the last three months (pro-rated for part-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. according to the number of days they work).

This depends on what their contract says.

Your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract may contain a clauseA provision or section. Usually in a contract. known as a flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. , which gives you the ability to change a specific term of the contract, for example the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's place of work (this is often called a mobility clauseA clause in the employment contract which allows the employer to change the employee's place of work without the consent of the employee.) or make changes to the contract more generally. If you think your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract has a flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. , see Q&A 15 for further information on how to use it and the problems that can arise.

However, if your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts do not say that you can change their terms at will, doing so without their agreement is a breach of contractFailing to keep to the terms of a contract by doing something which is forbidden or failing to do something which is required under the contract.. Your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. may accept the changes, but if they do not, they will be in a strong legal position to sue you for damages or treat their contract with you as at an end and claim constructive dismissalWhere an employee has resigned because his employment contract has been seriously breached, he can regard himself as having been dismissed.. In any case, taking such a step can cause damage to staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. morale and productivity. See Q&A 17 for more information on the consequences of trying to force changes to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’ contracts and the difficulties that may result.

Obtaining your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' consent is usually the simplest and safest way to change their contract. Some changes will be very straightforward to agree, particularly if they benefit the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., eg pay rises or promotions. Those which may adversely affect your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are likely to be more difficult to agree.

A key part of the process should be to undertake genuine and meaningful consultation with affected employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (and their employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. representatives, if relevant) about your proposed changes, to help them understand your reasoning and allow you to take on board A collective name for the directors of a company. The board is usually the primary day-to-day decision-making body of a company.their views. Working together with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to reach an agreement will not only help to ensure that you are following a fair and reasonable process, but it will also avoid damaging staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. morale and ultimately help you avoid the risk of legal challenges being brought against your business. Make sure you include all affected employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., including staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who are away from work (eg on maternity or other family related leave) and that you make reasonable adjustments for disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., or you risk facing claims for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

When trying to agree your proposed change with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., it is best practice (and can help to secure agreement) if you take the following steps:

1. Explain to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. why you are making the change

   You should discuss the reasons for the change, particularly if they relate to matters affecting the wider business that your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. may not know about. If the alternative to the change is staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. , this should be communicated to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. as they might be more inclined to agree. However, you should be careful not to make threats of dismissal to unwilling employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. as a negotiating tactic, or to subject them to inappropriate pressure to secure their agreement, eg by misleading them as to the effects of the changes, or frequently and aggressively pushing for their consent. High pressure tactics can lead employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to resign and claim constructive dismissalWhere an employee has resigned because his employment contract has been seriously breached, he can regard himself as having been dismissed. against you.

2. Give your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. the opportunity to express their views

   EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be more inclined to accept changes if they are presented with an opportunity to express their views on the matter, so you should ensure they have the chance to do so during the consultation. Make sure you answer any questions that they have and respond to any concerns raised. It is important that you keep an open mind and genuinely consider your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' views, including any alternative proposals, and that you factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. these into your decision-making process.

3. Soften the blow of the change

   If there are numerous changes to be made, perhaps because you are reorganising your business, consider whether it is possible to introduce them at intervals. You could also consider offering assistance to help employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. adjust to the change, such as temporarily helping with travel or relocation costs when changing your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' place of work.

4. Offer incentives to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who accept the change

   EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are more likely to agree to changes where they lose something if they feel they gain something in return. Offering incentives to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can be a good way of securing agreement without adverse effects on morale or productivity. You are not restricted to only offering financial benefits. For example, if you want to change shift patterns, you might be able to offer extra leave in exchange. Or, if you want to increase working hours, you could offer homeworking or other flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. arrangements on certain days.

If you manage to reach agreement with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., see Q&A 14 and Letter to staff member amending contract for how to give effect to the agreed change to their contracts. If you cannot reach an agreement with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., you can consider other, less amicable methods of forcing through the change, see Q&A 15 and following.

Once you make changes to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts, it is good practice to keep these under review, particularly if the changes were significant or were resisted by your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. This will help you to keep track of how your business and your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are adapting and monitor how the changes are being applied in practice.

Note that if your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have a trade union or staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. association, you may need to enter into a collective consultationA process where an employer consults with representatives of the workforce (often trade union representatives) regarding issues or changes in the workplace. with employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. representatives. Information on collective consultationA process where an employer consults with representatives of the workforce (often trade union representatives) regarding issues or changes in the workplace. is currently outside the scope of this service. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Although your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can agree verbally to a change in their contracts, it is advisable to seek written consent in order to prevent later confusion or disagreement. Give your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. a written record of the new terms as soon as you can and require them to sign and date a copy to confirm they understand and agree to the change before it takes effect. This is particularly important if the change agreed is not one that will have any immediate noticeable effect on the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., eg a change to their eventual pension entitlement.

Bear in mind that you are legally required to confirm any changes to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' or casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers.' core terms and conditions of employment (eg their job title, pay, working hours) in writing as soon as you can, and within a month in any event (see Q&A 3).

For a template letter requesting consent to a change in an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract which can also act as a record of their agreement, see Letter to staff member amending contract.

For a template letter confirming an increase in pay, see Letter to staff member confirming pay increase.

For a template letter if you have changed the place of work of an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in reliance on a clauseA provision or section. Usually in a contract. in their contract that allows you to do so, see Letter to staff member confirming change of work location.

For a template letter when an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract changes due to a promotion, see Letter to staff member confirming promotion.

Some employment contracts have a term reserving to the employerA person or business hiring one or more staff members. the right to make changes without first having to get agreement from the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. affected. Terms like this are called flexibility clausesClauses in employees' contracts which give the employer the ability to change certain terms of the contract without the consent of the employee. or variation clausesClauses in staff contracts which give the employer the ability to change certain terms of the contract without the consent of members of staff. . Such clausesProvisions or sections. Usually in a contract. can either give you the ability to change a specific term of the contract, for example the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s place of work (often called a mobility clauseA clause in the employment contract which allows the employer to change the employee's place of work without the consent of the employee.), or be much broader and allow you to make changes to the contract more generally.

If you have a flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. in your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. contracts, you should exercise caution in using it. There are limits to the extent to which you can rely on these clausesProvisions or sections. Usually in a contract. and it is recommended that you obtain legal advice if you intend to use one to make significant changes to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service. For a template letter if you have changed the place of work of an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in reliance on a clauseA provision or section. Usually in a contract. in their contract allowing you to do so, see Letter to staff member confirming change of work location.

See Q&A 16 for things to think about before you rely on a flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. .

Before relying on a flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. , bear in mind that:

1. The clauseA provision or section. Usually in a contract. must clearly give you the right to make the proposed change

   The wording of the flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. needs to be clear and unambiguous for you to be able to use it successfully and must cover the change which you are seeking to make. Any uncertainty about the meaning of the clauseA provision or section. Usually in a contract. will be interpreted in the way that is most favourable to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

2. You must act reasonably in the way you use the flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee.

   Even if the flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. says you can make specific changes to the contract, for example it says you can change the place of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s work or change their hours of work, you must be reasonable in the way that you act on it. If you behave unreasonably in the way that you seek to make the change, you can find yourself in breach of contractFailing to keep to the terms of a contract by doing something which is forbidden or failing to do something which is required under the contract.. For example, if you want to rely on a clauseA provision or section. Usually in a contract. that allows you to change an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s place of work, you should at the very least give your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. reasonable notice so that they are able to comply. It might also be prudent to consider offering financial assistance to help affected employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to adapt to the change.

3. The changes you propose must not be discriminatory

   In some cases the proposed change may impact certain groups more than others and could amount to unlawful discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. if it is not properly a fair and reasonable way of reaching a legitimate aimAlternative Investment Market, a sub-market on the London Stock Exchange for growing companies.

   For example, if you change your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts to give longer working hours this could be more difficult for women (who statistically have a greater shareA share in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. of childcare responsibilities) or could pose problems for staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. with disabilities. You should therefore discuss the proposed changes in advance, take on board A collective name for the directors of a company. The board is usually the primary day-to-day decision-making body of a company.what your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. say and try to work with them to find an alternative or lessen the negative impact on them. This approach helps avoid employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. dissatisfaction and reduces the risk of a discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claim being brought against you. It can also help you to defend a claim if one is brought.

To give effect to any changes you make using a flexibility clauseA clause in an employee's contract which gives the employer the ability to change certain terms of the contract without the consent of the employee. , you should inform your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in writing so that there is no confusion or dispute in the future. See Q&A 14 for information.

You should always aimAlternative Investment Market, a sub-market on the London Stock Exchange for growing companies to consult your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and get their agreement to changes to their working arrangements, and then document it formally, before you make the change; see Q&A 11 and following for how to do this.

If you decide to impose changes without consulting or getting your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' agreement, and they simply continue working and do not object to the changes, they may eventually be considered to have accepted them. However, this will very much depend on your particular circumstances. The main problem is the uncertainty after you have made the change if your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. neither object nor express their agreement. If the change is something which will not noticeably affect your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for a long time (eg changes to pension entitlements when they retire), then it is unrealistic to expect them to immediately object, and their objections may not come to light for many years. Their failure to act or object may not be because they have accepted the change to the contract. It could be that they have simply continued to work, oblivious to the change, in which case your attempted changes to the contract will not bind them.

If you fail to validly vary your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts in this way, at a minimum, your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will not be bound by the changes and you will be in breachA violation of a legal or moral obligation. of your contract with them. If the change you have attempted to bring in is a significant one (for example, a substantial reduction in hours and pay), your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. may be able to resign and sue you for constructive dismissalWhere an employee has resigned because his employment contract has been seriously breached, he can regard himself as having been dismissed. or unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878..

NOTE: Following the introduction of the Employment Rights Bill to Parliament on 10 October 2024, this area of law is being considered for reform (see our blog explaining the Bill here). Any reforms are unlikely to take effect before 2026. Dismissing employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for refusing to agree to a variation to their contract would be considered unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. if the Bill becomes law.

You can do this, but you should only do so as a last resort, after thoroughly considering other options available and after consulting with the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in question to try to reach an agreement (see Q&A 13). This is because there are significant risks involved if you choose to dismiss and rehire employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.; from damage to your working relationships, through to reputational damage and the risk of legal claims against your business. This practice is sometimes referred to as 'fire and rehire'.

If you do wish to enforce a contract change by dismissing and re-hiring your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., you must make sure to have clear and proper reasons for dismissal, give the correct amount of notice and otherwise follow proper dismissal and recruitment procedures to avoid your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. later alleging unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878.. You should comply with the Code of Practice on Dismissal and Re-engagement; although this code is not legally binding, employment tribunals will take your compliance with the code into account when assessing awards against you. Under this code, you are required to (among other things) consult with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. about the changes 'for as long as reasonably possible in good faithTo act in good faith means behaving fairly and openly, essentially playing fair.', explore alternatives to 'fire and rehire', consider feedback from employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and their representatives, and not use threats of dismissal to coerce employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. into signing new terms and conditions (and/or use threats of dismissal if it is not actually envisaged).

Note that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can bring a claim against you for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. even if you have subsequently re-hired them. Furthermore, while employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have previously objected to the change in their contracts may agree to be re-hired on the new terms, it is equally open to them to reject the offer. If this method of changing employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts is used with a large number of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., you could end up with very few of your original employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. left at the end of the process.

You must take particular care if the proposed changes to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts are significant. If you are actually re-hiring your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to do a different kind of work than they were doing before, you may really be making them redundant. In that situation, they can choose to refuse your offer to re-hire them and claim any redundancy paymentMoney paid to a staff member because he is being made redundant. to which they would normally be entitled.

See Process for dismissing an employee and Redundancy process for further information about dismissals and redundancyWhen a staff member is dismissed because his role is no longer needed..

In order to make changes to a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.'s contract, you should first check if the contract itself provides for a particular procedure to follow. For example, it is fairly common to require any changes to the contract to be made in writing and signed by the parties.

The contract may, like any other contract, be amended by obtaining the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.'s consent to the change. Note that there may be provisions in the contract that enable you to terminate it which you could use to put commercial pressure on a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. to assent to your proposed amendment.

Your contract may state that any changes to it must be in writing, but even if this is not the case, reducing it to writing will help to avoid any confusion or dispute in the future as to exactly what was agreed and when.

See Contracts for freelancers for further information about freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. contracts and Consultancy agreement for a template contract.

If you are a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. providing your services to a business, see Consultancy agreements for further guidance.

In order to make changes to the contract of engagement for a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., you should first check if the contract itself provides for a particular procedure to follow, or gives you the right to just make certain changes that you need without asking.

If not, the terms of engagement may, like any other contract, be amended by obtaining the casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s consent to the change . Attempting to simply make changes without agreement will be a breach of contractFailing to keep to the terms of a contract by doing something which is forbidden or failing to do something which is required under the contract. by you and your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. may be entitled to sue you for damages or treat their contract with you as at an end if the changes you propose go to the heart of it. See Letter to staff member amending contract for a template letter you can use to request consent.

There are some changes to a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s contract that must be recorded in writing; these are listed in Q&A 3. For other changes, your contract may tell you that they need to be in writing, but even if this is not the case, confirming them in writing will help to avoid any confusion or dispute in the future as to exactly what was agreed and when. Ideally you should get the casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. to sign and date a copy for your records to evidence their agreement.

Some templates you may use are as follows:

1. to confirm an increase in pay, see Letter to staff member confirming pay increase;

2. if you have changed the place of work of a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. in reliance on a clauseA provision or section. Usually in a contract. in their contract that allows you to do so, see Letter to staff member confirming change of work location;

3. for changes due to a promotion, see Letter to staff member confirming promotion.

See Contracts for casual workers for further information about casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. contracts and Contract - casual worker for a template contract.