Industrial action at Southampton City Council has highlighted the legal issues around making changes to employment contracts.
The council is seeking to save £65 million over the next four years and has introduced changes to pay, terms and conditions for staff that it says will allow it to protect 400 jobs.
The changes include those earning more than £17,500 a year taking a pay cut of between 2 per cent and 5.5 per cent, with those earning most having the biggest reductions. The council says that out of the 4,627 employees who had received letters concerning the changes, 17 have chosen not to sign the new contracts and will lose their jobs.
Hundreds of council workers marched through Southampton on 13 July to protest at the introduction of the new contracts. Council employees, including library staff, refuse workers and street cleaners, have also been taking strike action.
John Dalby, head of the Employment department at Gregg Latchams, said: “An employment contract cannot just be changed or scrapped by an employer as they wish. Any changes should normally be made after consultation, negotiation and agreement.
“If the process is incorrectly handled, the employer risks finding itself in the employment tribunal facing claims for unfair dismissal or breach of contract.
“In the current economic climate, more employers may be finding it necessary to change working practices, rates of pay or working hours. It is possible to do this but care needs to be taken. Taking advice from an employment law specialist is the right approach, so they can be sure they follow the appropriate procedures correctly and minimise their risk of dispute with employees.”
For more information, please contact John Dalby.
