When reviewing and changing the contract of employment the following steps should be considered:

• What are the existing terms and conditions?

• Are terms and conditions located in documents other than the written contract, e.g. in a handbook or collective agreements?

• Do the existing terms and conditions contain sufficient flexibility to allow the actions/changes required?

• Is there a recognised trade union which has the authority to negotiate on the employees’ behalf?

• Are there existing trade union collective agreements which require the employer to collectively bargain on changes to terms and conditions?

• What is the business justification for the change?

• What collective consultation mechanisms are in place?

• Will employee representatives need to be elected?

• How will individual consultation be affected?

• Are employees likely to accept the changes?

• Will sweeteners and inducements be offered?

• Is the employer prepared to risk unilateral variation (imposing the change) and will this be effective?

• If new contracts are required, will termination and re-issue be employed?
 

In the majority of cases, by far the best way of changing terms and conditions is to avoid conflict and obtain employee agreement to the changes. It may also be preferable to red circle existing employees and offer the new terms and conditions to new employees. Through turnover over a period of time a broad contract change exercise will have been effective.

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Link for ebook: REVIEWING AND CHANGING CONTRACTS OF EMPLOYMENT