Changing Terms and Conditions of Employment

Practical legal advice to help employers change employment terms, consult effectively and implement new working arrangements while managing legal risk.

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Businesses sometimes need to change employment terms in response to new working practices, financial pressures, changes in location, technology, working hours or wider organisational requirements. Because an employment contract is legally binding, employers cannot normally impose contractual changes simply because the business considers them necessary.

DTM Legal advises employers on varying employment contracts and introducing changes across individual roles or larger sections of the workforce. We help businesses establish whether changes require employee agreement, identify existing contractual flexibility and develop an appropriate consultation and implementation strategy.

Where agreement proves difficult, our Employment & HR solicitors can advise on the available options and associated risks, including collective consultation and dismissal and re-engagement. Our focus is on helping employers achieve necessary business change while preserving employee relations and reducing the likelihood of contractual or Employment Tribunal claims.

Changing Employment Terms Legal Services

We provide practical advice and support across a wide range of contractual change matters, including:

  • Reviewing employment contracts and existing terms
  • Identifying contractual flexibility and variation clauses
  • Changes to working hours and shift patterns
  • Changes to working location
  • Pay and remuneration changes
  • Bonus and commission arrangements
  • Changes to duties and responsibilities
  • Hybrid and remote working arrangements
  • Changes to benefits
  • Changes arising from business reorganisations
  • Harmonising employment terms
  • Preparing contractual variation letters
  • Updating employment contracts and written statements
  • Individual employee consultation
  • Consultation with employee representatives
  • Consultation with recognised trade unions
  • Collective bargaining over contractual changes
  • Changes following a TUPE transfer
  • Assessing discrimination and equality risks
  • Responding to employee objections
  • Negotiating agreed contractual variations
  • Dismissal and re-engagement advice
  • Collective consultation where dismissals are proposed
  • Settlement agreements and negotiated solutions
  • Defending breach of contract, unlawful deduction and dismissal claims

Why Instruct DTM Legal?

Changing contractual terms can create significant legal and employee relations risks if the process is handled incorrectly. Our Employment & HR team helps employers establish which terms are genuinely contractual, whether existing flexibility can be used and what consultation is required before changes are implemented.

We work with employers to explain the business rationale clearly and develop a meaningful consultation process. This can increase the likelihood of reaching agreement while ensuring alternative proposals and individual circumstances are properly considered.

Where agreement cannot be reached, we provide a clear assessment of the available options and their risks. Dismissal and re-engagement should be treated as a last resort, and we can guide employers through the current statutory Code of Practice and forthcoming changes to the law.

We provide:

  • Clear advice on contractual rights and obligations
  • Practical strategies for achieving agreed changes
  • Support with individual and collective consultation
  • Drafting of variation letters and updated contracts
  • Advice on flexibility clauses and existing contractual powers
  • Strategic guidance where employees object to proposed changes
  • Support with dismissal and re-engagement where necessary

Get in Touch

Whether you are proposing changes for an individual employee or reviewing terms across your wider workforce, our Employment & HR team can help you develop an appropriate consultation and implementation strategy.

To discuss your requirements, contact us by emailing employment@dtmlegal.com or calling 01244 354 800 / 0151 321 0000.

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Key Considerations When Changing Employment Terms

Read our Key Considerations guide to understand some of the points a solicitor may wish to discuss when responding to your enquiry. It can help you prepare the relevant information and make your initial conversation more productive.

View Key Considerations

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Frequently Asked Questions

Commonly asked questions about changing terms & conditions as an employer and the legal support available.

Usually not. Employment contracts are legally binding and contractual changes will generally need the employee’s agreement unless the employer has an appropriate contractual right to make the particular change.

Imposing a change without agreement can create risks including breach of contract, unlawful deductions from wages and constructive dismissal claims.

Potentially, but the wording and scope of the clause must support the proposed change. A general flexibility clause does not necessarily give an employer unrestricted power to change contractual terms.

Employers should still consult affected employees, consider individual circumstances and assess whether using the clause would be reasonable.

Employers should explain what they propose to change, why the change is needed, who will be affected and when they would like it to take effect.

Employees and relevant representatives should then have a genuine opportunity to ask questions, raise concerns and suggest alternatives. Employers should seriously consider those representations before making a final decision.

The employer should first understand why the employee objects and explore whether further consultation or an alternative arrangement could resolve the issue.

Other options will depend on the contractual position and business circumstances. Employers should obtain advice before imposing changes or considering dismissal and re-engagement because either approach can create significant contractual and dismissal risks.

Under the law currently in force, dismissal and re-engagement can potentially be used where agreement cannot be achieved, but it should be treated as a last resort. Employers must follow a fair process and the statutory Code of Practice on dismissal and re-engagement.

The law is due to change on 1 January 2027, when dismissal and re-engagement will become automatically unfair in most circumstances. Employers considering this approach should therefore obtain specific advice on the rules applying at the time.

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