Sometimes it's necessary to make changes to an employee's employment contract. This could be, for example, because of a change of job title, longer agreed working hours or increased holiday. When making changes, it's important to obtain agreement from any employee affected. Although it's possible to achieve this agreement in advance, by allowing for minor or reasonable changes in the original contract, you should still send out a Change to employment terms letter. This letter will either inform relevant employees that you're changing certain terms (if agreed in the original contract), or else it will be your way of gaining their agreement. It's important to note that you can't unilaterally change an employee's employment contract without prior consent.
Employers face numerous issues on a day-to-day basis when dealing with employees. Employers also have to make sure they comply and follow any employment laws. Make sure you use the correct documents to record key decisions and company policies. If you need to make a change to an employment contract use a Change to employment terms letter. If you need a worker to work more than 48 hours a week consider asking them to agree using a Working time directive opt-out letter. Displaying a Grievance procedure and Disciplinary procedure is a good way to show employees you are a transparent and open employer.
Making changes to an employment contract
Implied terms of employment contract
Not every situation can be contained in the written contract of employment. Some terms will be implied (ie assumed) into the employment contract to make it work. For example the employment contract doesn't need to say that the employee will not steal from the employer as this is usually assumed and obvious. For further information read Implied terms of employment contract.
Working time limits
The basic rule is that workers must not work more than 48 hours a week when averaged over 17 weeks. This includes on-call time, work done at home and working lunches. If staff work longer or close to the 48 hour limit, it's possible to ask them to opt-out of this working time limit by signing a Working time directive opt-out letter. Employees cannot be pressured into signing an opt-out agreement and must be allowed to withdraw consent if they change their mind. For further information read How to opt-out staff from the 48 hour week.
Staff sickness
Managing staff sickness and absence is one of the most challenging tasks that employers face. If a qualifying employee has been off work for four or more days in a row, employers must pay statutory sick pay at a rate set by the government for up to 28 weeks qualifying absence. Employers can also offer enhanced sick pay. Employers often set out in an employment contract or sickness policy the period of time that employees will receive enhanced pay, how many absences in a year will trigger a meeting with a superior to discuss sick leave and what time an employee must tell a superior they are taking the day off sick. Create a Sickness policy to incorporate into your business to let employees know what your policy is. For further information read Sick pay.
Employee holidays
Full-time employees are entitled to a minimum of 28 days of holiday a year (this can be inclusive or exclusive of bank holidays). The employer's holiday policy should be set out in an employee's Employment contract. For further information read Employee holidays and understand what you should do to comply with the law.
Why have a disciplinary procedure?
A disciplinary procedure clearly explains the disciplinary process to employees. This includes investigations, hearings and companions. It also provides employees with examples of unsatisfactory behaviour and gross misconduct. Implementing one shows a commitment to a fair process and leaves employees in no doubt about what is considered acceptable behaviour in the workplace. Create a Disciplinary procedure which you can implement into your business.
Why have a grievance procedure?
Implementing a grievance procedure allows employers to deal with all grievances raised by employees fairly and consistently. A grievance procedure explains how to raise a grievance, the process and gives examples of types of grievances that can be raised by employees. Create a Grievance procedure which you can implement into your business and let employees know how they can raise issues with you directly and comply with the law.
Employee use of IT
More businesses are heavily investing in IT and communications equipment to help run and support their business. It's important to create a Communications and equipment policy which will clearly outline to your staff the rules and procedures regarding the access and usage of the IT equipment. For further information read Employee use of IT.
Intellectual property, data protection and privacy
Employers and businesses must be aware of the relevant laws on intellectual property, data protection and privacy in the workplace. The general rule is that employees who create any intellectual property during the course of their employment will be owned by the employer. For further information read Employees and intellectual property, Data protection and employees and Protecting confidential information.
Employment tribunal
Most employment disputes that can't be resolved between the employer and employee, or through conciliation, end up in the Employment Tribunal where a legally qualified employment judge will hear the case and make a decision based on the facts and the merits of each person's case. Some of the most common issues raised in the Employment Tribunal are discrimination cases, unfair dismissal, harassment and redundancy payments. However the Employment Tribunal should only be considered as a last resort if all else fails. The Employment Tribunal procedure is slightly different in Scotland. For further information read Employment tribunals.