Signing a new contract whilst in employment

[pugwash4x4]

Wife has been employed in same role at the same SME for 3.5 years now.

There's been ructions ref pay for a whilst, and in her annual review this year she was informed of a company wide 3% rise (yippee) and the renewed company bonus scheme (which they've had for ages and never paid out- alledgedly the company doesn't make enough- although the MD took £400k last year!).

In someone elses annual review it was mentioned that everyone would have to sign new contracts.

whats the legality here? knowing the company as i do, the contracts will have some silly clause in it that leaves the employees severely disadvantaged.

can't find anything specific on the net that helps.....

[eltawater]

The employees will be informed of the new terms and conditions of employment and can then decide if they wish to work under them. They don't have to sign the new contract, but if they continue to turn up for work and expect to get paid for it, then it is deemed that they have accepted to work under the new terms and conditions.

If they are unwilling to work under the new terms and conditions of employment, then they give their notice.

[pugwash4x4]

hohestly?

seems like an easy way of sacking your work force!

[eltawater]

It's a simplified explaination.

More info can be found here:

http://www.direct.gov.uk/en/Employment/Employees/E...

[edc]

I bet the payrise and eligibility for bonus this year will be conditional on a newly signed contract. It's a good way to get updated restrictive covenants in.