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Michael Lewinski
Member - 2 posts
Our cleaner, who has been with the Club since April 2001, earns £200.00 (flat rate) per week. We wish to change her rate of pay to £5.00 per hour for 20 hours work per week. Since we will be reducing her wage by half, what is our position?
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Helen Abbott
Member - 31 posts
Hello Michael,
I think that you may find this rather tricky as you are essentially changing her contractual terms.
There are four main ways in which an individual employment contract can be changed:
1. Variation by implied or express consent
2. Contract allows for variation
3. Union agreement
4. Change is imposed by the employer
Variation by express consent on the part of the employee (preferably in writing) is obviously the most desirable way of implementing changes.
Contract allowing for variation tends to cover issues such flexibility and mobility clauses and would not be suitable in your particular circumstances.
Union agreement would be applicable if your employee is a trade union member and the union was acting as an agent or the contract incorporates agreements made with the union.
Change imposed by an employer can be done in two ways:
1. Either the employer can terminate the existing contract and substitue a new one, or
2. The employer may simply present the changes to the employee as a fait accompli.
The manner in which the employer imposes the changes to the contract determines the remedies available to the employee.
If you dismiss your cleaner when she refuses to accept the change and offer to re-engage her on new terms then she may make a wrongful dismissal and/ or unfair dismissal claim.
If you present it as a fait accompli then she has four options:
1. She can simply accept the change
2. She can resign and claim constructive dismissal
3. She can stay at work, under protest, and sue at Employment Tribunal or County Court for damages (i.e. the difference in pay if a reduction in salary has been imposed)
4. She could resign or stay and bring an unlawful deduction from wages claim.
I hope that this is helpful and provides some guidence on the options that you might consider.
For further practical advice tailored to this situation, Workplace Law can offer Human Resources Consultancy services at a reasonable cost. Please contact me for further details.
Helen Abbott
HR Consultant
Workplace Law Group
Tel 0870 7778881
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