New ACAS Guidance on Contractual Changes

New ACAS Guidance on
Contractual Changes

In responses to the Government’s recent consultation on firing and rehiring practices, ACAS has recently published new guidance on employer’s responsibilities when making changes to employment contracts. If an employer’s responsibilities when making changes to employment contract, that must be agreed to by the individual (or sometimes, with employee representatives or a trade union). Taking unilateral action, or firing and rehiring employees, may lead to legal claims, harming the employment relationship and damaging the employer’s reputation. Employers who want to make a contractual change can use the new guidance published by ACAS. Guidance emphasises that rehiring employees on new contractual terms is a high-risk strategy that should only be used as a last resort, and employers are encourages to first explore all other options available thoroughly to them.