Changing terms and conditions

Changing terms and conditions of employment-unilateral change by council employer of benefits found to be breach of contract

 

 

In Nicholas Hugh Parry Weatherill and others v Birmingham City Council council employees sued successfully for breach of employment contract.

 

 

The case upheld the maxim that although employers can amend terms of employment contracts legally,typically this has to be done by:

 

 

• the terms of the agreement or by

   

• subsequent consent by employer or employee.

   

 

If the change is not authorised by the contract an employer may:

 

 

• seek express approval from the employee or;

   

• unilaterally change and then rely on the employer’s conduct subsequently showing that consent was obtained or

   

• terminate the contract lawfully under the terms of the agreement and then offer to re-employ under the new terms.

   

 

Here the council amended unilaterally the specific car user allowance. Under detailed provisions there were four bands of car user allowances (payments) defined by the engine capacity. In 1993 the council without consultation removed band three and the employees continued to work “under protest”, took union advice and began industrial action.

 

 

Accordingly the employees were able to argue that their conduct showed they never accepted the variations and payments of allowances at the lower bands.

 

 

It is a dangerous tactic to seek to dismiss and re-employ on amended terms as this council sought to do. Likewise dangerous and costly to ignore proper consultation which they had undertaken before successfully for the removal of a band. The failure to consult properly and to negotiate cost them dear-a “shortcut” that was anything but in fact.