Change to Contract
Discussion
I've worked for the same firm for over 20 yrs. Every now and then they update the contract wording. However, the last time they did this, about 5 yrs ago, there was a clause in the new contract that I wasn't happy with, basically restricting me for a year on what I could do if for any reason we were to part company, so I refused to sign. This caused a bit of consternation with the M.D. at the time but after an exchange of views they issued an amended contract without the section I objected to.
Now they are updating the contract again, again with the restriction, again I have refused to sign it.
But now they are saying if I don't sign the new contract as is, they will give me notice on my existing contract (3 months due to my length of service). Basically make me redundent.
Can they do this? Isn't that an unfair reason for dismissal? I have a contract and I'm quite happy with it. Why should I have to sign a new one with restrictions?
Now they are updating the contract again, again with the restriction, again I have refused to sign it.
But now they are saying if I don't sign the new contract as is, they will give me notice on my existing contract (3 months due to my length of service). Basically make me redundent.
Can they do this? Isn't that an unfair reason for dismissal? I have a contract and I'm quite happy with it. Why should I have to sign a new one with restrictions?
An employment contract can only be changed with the agreement of both parties - i.e. you and the employer.
If they change a contract against your will, and you disagree and it leads to you leaving / being made redundant, then that's called 'constructive dismissal' and you would win a tribunal hands down.
The only other way they can make you redundant is after a full redundancy study, skills matrix and good reason for making your post (note - I said YOUR POST, not YOU) redundant.
You're on solid ground here, so dont take any chicanery.
And, after posting on here - go see a decent employment solicitor pronto on Monday. Sounds like you might have a long fight on your hands soon.
Good luck.
If they change a contract against your will, and you disagree and it leads to you leaving / being made redundant, then that's called 'constructive dismissal' and you would win a tribunal hands down.
The only other way they can make you redundant is after a full redundancy study, skills matrix and good reason for making your post (note - I said YOUR POST, not YOU) redundant.
You're on solid ground here, so dont take any chicanery.
And, after posting on here - go see a decent employment solicitor pronto on Monday. Sounds like you might have a long fight on your hands soon.
Good luck.
Ignore the reply above and speak to ACAS.
However, if you do not agree to a change in your contract then your employer has the right to terminate that contract (with notice). They will then offer to re-employ you on the new contract. If you choose to reject it then you will be redundant.
http://www.direct.gov.uk/en/Employment/Employees/E...
The clause would only have any impact if you were to leave (and can not be so restrictive that it prevents you from working) and you have already been there for 20 years (so presumably are happy) - don't fall into the trap of cutting off your nose to spite your face.
However, if you do not agree to a change in your contract then your employer has the right to terminate that contract (with notice). They will then offer to re-employ you on the new contract. If you choose to reject it then you will be redundant.
http://www.direct.gov.uk/en/Employment/Employees/E...
The clause would only have any impact if you were to leave (and can not be so restrictive that it prevents you from working) and you have already been there for 20 years (so presumably are happy) - don't fall into the trap of cutting off your nose to spite your face.
ralphrj said:
Ignore the reply above and speak to ACAS.
However, if you do not agree to a change in your contract then your employer has the right to terminate that contract (with notice). They will then offer to re-employ you on the new contract. If you choose to reject it then you will be redundant.
Oh right, thanks for that... However, if you do not agree to a change in your contract then your employer has the right to terminate that contract (with notice). They will then offer to re-employ you on the new contract. If you choose to reject it then you will be redundant.
If he refuses a change in his contract, and the employer then terminates his contract, that is constructive dismissal is it not - and he will have good grounds for a tribunal, will he not?
Or has the law changed recently?
That is how it was when I was both in recruitment and latterly as GM in charge of all our staff anyway?
I went through, just about, exactly the same thing. I resigned and was successful in my tribunal claim, however, my ex employer refused to pay me the monies awarded by the tribunal. I had to raise my own civil action in the County Court to get my money as the Tribunal had no power to enforce payment, only to award it.
It seems to be a trick that too many unscrupulous employers are getting wise to.
Hope it all works out for you.
It seems to be a trick that too many unscrupulous employers are getting wise to.
Hope it all works out for you.
ralphrj said:
The clause would only have any impact if you were to leave (and can not be so restrictive that it prevents you from working) and you have already been there for 20 years (so presumably are happy)
No, the clause applies even if they get shot of me. It doesn't prevent me from working, but prevents me from trying to win contracts for any new employer that are currently held by my existing employer (who would then be my ex employer, if that makes sense.) Ray Luxury-Yacht said:
Oh right, thanks for that...
You're welcome.Ray Luxury-Yacht said:
If he refuses a change in his contract, and the employer then terminates his contract, that is constructive dismissal is it not - and he will have good grounds for a tribunal, will he not?
Or has the law changed recently?
That is how it was when I was both in recruitment and latterly as GM in charge of all our staff anyway?
Did you even read the link I posted?Or has the law changed recently?
That is how it was when I was both in recruitment and latterly as GM in charge of all our staff anyway?
Directgov said:
If you don't agree, your employer is not allowed to just bring in a change. However, they can terminate your contract (by giving notice) and offer you a new one including the revised terms - effectively sacking you and taking you back on. Your employer would be expected to follow a statutory minimum dismissal procedure. They may have to follow a collective redundancy consultation process if they plan to do this to a group of employees.
If this situation happens in your workplace, you should contact the Advisory, Conciliation and Arbitration Service (Acas) or another advice service from our contacts pages for further guidance.
If you don't accept the new contract - or if you've accepted the new one but feel there was no good reason for ending the old one - you have the right to make an unfair dismissal claim provided you've at least one year of continuous service with your employer. You may also be able to claim redundancy if you have at least two years service.
If there is a sound business reason for the change, and your employer has properly consulted you and looked into any alternatives, you could find it difficult to win your claim.
If this situation happens in your workplace, you should contact the Advisory, Conciliation and Arbitration Service (Acas) or another advice service from our contacts pages for further guidance.
If you don't accept the new contract - or if you've accepted the new one but feel there was no good reason for ending the old one - you have the right to make an unfair dismissal claim provided you've at least one year of continuous service with your employer. You may also be able to claim redundancy if you have at least two years service.
If there is a sound business reason for the change, and your employer has properly consulted you and looked into any alternatives, you could find it difficult to win your claim.
TwigtheWonderkid said:
No, the clause applies even if they get shot of me. It doesn't prevent me from working, but prevents me from trying to win contracts for any new employer that are currently held by my existing employer (who would then be my ex employer, if that makes sense.)
I don't know what industry you work in but I have seen the same clause in a few businesses I have worked at and I don't think it would be viewed by a tribunal as unreasonable (assuming that the restriction was only in place for a period of time rather than indefinitely).As has been stated above, provided your employer complies with an appropriate process of consultation and can demonstrate a legitimate business need, they are entitled to revise contract terms. You are not, of course, obliged to accept them but you risk being redundant if you do not.
If you challenge this via a tribunal it will come down to the employer's processes and business case. If they're sound they will win, if they are not you will.
If you challenge this via a tribunal it will come down to the employer's processes and business case. If they're sound they will win, if they are not you will.
TwigtheWonderkid said:
No, the clause applies even if they get shot of me. It doesn't prevent me from working, but prevents me from trying to win contracts for any new employer that are currently held by my existing employer (who would then be my ex employer, if that makes sense.)
I think the company would find that difficult to justify and be upheld given that they got rid of you.This is on the basis that the para implies a sales role ("win contracts") and if your job was sales in that industry/sector - so the company are effectively preventing you from doing your normal work, when it ws the company whose actions severed the employment relationship. A check with ACAS or employment lawyer.
Edited by 72EuropaTC on Sunday 12th August 11:56
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