Workplace issues: learning from the frontline

Changing terms and conditionsCarla Bennett

27 March 2013

Law on Contract Changes

Overview:• Statement of particulars • Types of contractual terms • Varying the contract – how and in what ways?• Tactics

Law on Contract Changes

• S1 Employment Rights Act 1996 (‘ERA’)• Must be provided within 2 months of start of

employment• Must include specific details • Not a contract, but evidence of agreed terms• S4 ERA 1996 – Notification of changes• Section 11 claim – Southern Cross Healthcare Co

Ltd v Perkins and ors [2010] EWCA civ 1442

Law on Contract Changes

The 4 Types of Terms in an EmploymentContract1. Express Terms2. Implied Terms3. Incorporated Terms4. Statutory Terms

Law on Contract Changes

There are 4 ways to vary a contract:• By agreement• Contractual right to vary• Collective agreements • Unilateral variation

Law on Contract Changes

1. Variation by Agreement• Express• Implied - Aparau v Iceland Frozen Foods [2000] ICR

341 and GAP Personnel Franchises Ltd v Robinson UKEAT 0342/07

• Non – contractual provisions• Discretionary bonus schemes – Attrill v Dresdner

Bank [2012] EWHC 1189

Law on Contract Changes

2. Contractual Right to Vary• Flexibility clauses

– Mobility clauses – United Bank v Akhtar [1989] IRLR507– Bateman and ors v Asda Stores ltd [2010] IRLR 370

• Approach by the courts:– Clear right to vary– Not used to produce an unreasonable result

but see Home Office v Evans & anor [2008] ICR 302

Law on Contract Changes

3. Collective Agreements• Incorporated into the contract• Express incorporation – City of Edinburgh

Council v Brown [1999] IRLR 208• Implied incorporation – Henry v London

General Transport Services [2002] IRLR 472• Apt for Incorporation – Kaur v MG Rover

Group Ltd [2005] IRLR 40, Malone and ors v British Airways [2010] IRLR32

Law on Contract Changes

4. Unilateral Variation• Accept the Breach• Stand and Sue/Declaration• UDW Declaration• Dismissal

- Hogg v Dover College 1990 ICR 399 imposition of new terms can result in dismissal of old contract and entry into new contractQ. was the dismissal fair? SOSR or redundancy- Garside and Laycock Ltd v Booth UKEAT/2011/0003

• Refusal to Work under new terms – Robinson v Tescom Corpn – [2008] IRLR408

Law on Contract Changes

Tactics1. The Contract is sacrosanct2. UDW/Breach of Contract3. Declaration/Unfair Dismissal4. Constructive Dismissal5. Challenging SOSR – Garside and Laycock Ltd v

Booth UKEAT/2011/00036. Protective Awards

Law on Contract Changes

Conclusion