Company want to change contract?

internetdrifter

Hi
My company wishes to change the terms of employment, as yet not confirmed in writing and they are quite forceful about everything, especially towards staff. Things tend to alway be a bit Ad Hoc and "Lump it or Leave it".

If I refuse and the company terminates the contract, am I entitled to receive, the bonus payment due on the work completed to date. They keep some money back each day to pay you in the quite season, they call it a bonus at their discretion. Will they be able refuse to pay the amount due to date, if I refuse new contract.

Thanks for any advice.

Regards

agrinnall

Probably, if it's a bonus at their discretion you could well expect them to exercise that discretion if you leave.

robatwork

internetdrifter wrote: »

they call it a bonus at their discretion.

Well that's your answer in your own words...

sangie595

If you refuse, the company won't need to terminate the contract. You will be resigning.

internetdrifter

I am not legally or contractual required to accept a changes to the current contract. That is not resigning, that is my rights under the current contract.

If the company wish to have a new contract they must terminal the current one not me. They must meet their contractual obligations to date, surely.

My question is, will I get the pro rata of the bonus for work met.

ohreally

internetdrifter wrote: »

they call it a bonus at their discretion.

internetdrifter wrote: »

My question is, will I get the pro rata of the bonus for work met.

I would view this as deferred pay and not a bonus. Over time, has this payment become customary and does everyone receive it?

sangie595

internetdrifter wrote: »

I am not legally or contractual required to accept a changes to the current contract. That is not resigning, that is my rights under the current contract.

If the company wish to have a new contract they must terminal the current one not me. They must meet their contractual obligations to date, surely.

My question is, will I get the pro rata of the bonus for work met.

Sorry, but your law is wrong. The employer is permitted in law to impose new conditions, and if you refuse them, you are resigning. So you have no rights under "the current contract", which I very much doubt says "if we change your terms and you don't like it, then we will sack you".

It is very simple. They tell you what the new terms are. You accept them and/ or continue working (which is the same thing).You don't accept them and you have resigned. It is the rare circumstance where you can resign and claim unfair dismissal. But if the employer has anything about them, you won't win it.

Other than that, as others have said, you have answered your own question. It's discretionary. So it's discretionary. You obviously seem to intend to resign - so I wouldn't, in your position, depend on having that money.

SeduLOUs

sangie595 wrote: »

Sorry, but your law is wrong. The employer is permitted in law to impose new conditions, and if you refuse them, you are resigning. So you have no rights under "the current contract", which I very much doubt says "if we change your terms and you don't like it, then we will sack you".

Wrong.

Neither party can change the contract unilaterally without the agreement of the other. If they could, then employees could start writing letters to employers to notify them of payrises they have decided to award themselves!

I am fully aware that in practice it does happen and employers do pull this sort of thing, but assuming that you have the necessary two years service, then the employer is not legally allowed to simply breach or change a contract at their whim.

If the employer terminates the existing contract and implements new terms this could be unfair dismissal. If the employer significantly changes the contract and as a result the employee resigns, this could be constructive dismissal.

With regard to the bonus, you have said yourself it is discretionary. If it has happened regularly over a long period of time there could be an argument for it being expected due to custom and practice, and this could be added to any dismissal claim.

Tread carefully though. Even with the law on your side and even armed with a whole boat of evidence, claims are long, stressful and extremely expensive (with the secondary stress of being out of a job). It is much better to try to do everything possible to resolve the situation amicably with the employer (although this does not mean you should feel forced to accept new terms).

sangie595

SeduLOUs wrote: »

Wrong.

Neither party can change the contract unilaterally without the agreement of the other. If they could, then employees could start writing letters to employers to notify them of payrises they have decided to award themselves!

I am fully aware that in practice it does happen and employers do pull this sort of thing, but assuming that you have the necessary two years service, then the employer is not legally allowed to simply breach or change a contract at their whim.

If the employer terminates the existing contract and implements new terms this could be unfair dismissal. If the employer significantly changes the contract and as a result the employee resigns, this could be constructive dismissal.

With regard to the bonus, you have said yourself it is discretionary. If it has happened regularly over a long period of time there could be an argument for it being expected due to custom and practice, and this could be added to any dismissal claim.

Tread carefully though. Even with the law on your side and even armed with a whole boat of evidence, claims are long, stressful and extremely expensive (with the secondary stress of being out of a job). It is much better to try to do everything possible to resolve the situation amicably with the employer (although this does not mean you should feel forced to accept new terms).

Ermm no, not wrong. Because I did say that this is the rare circumstance where an enforced change could result in a claim for unfair dismissal. But I also mentioned that most such claims don't win.

The employer is entirely able to terminate and offer new conditions, which you accept or not. If you do not accept them then it is deemed a resignation.

And it is not a claim for constructive unfair dismissal, which is something else entirely. In these circumstances it is a claim for unfair dismissal (no constructive about it).

SeduLOUs

sangie595 wrote: »

Ermm no, not wrong. Because I did say that this is the rare circumstance where an enforced change could result in a claim for unfair dismissal. But I also mentioned that most such claims don't win.

The employer is entirely able to terminate and offer new conditions, which you accept or not. If you do not accept them then it is deemed a resignation.

And it is not a claim for constructive unfair dismissal, which is something else entirely. In these circumstances it is a claim for unfair dismissal (no constructive about it).

If an employer terminates the contract (even to offer new terms) then they have dismissed the employee. Forcing new terms is not a fair reason to dismiss, hence possible unfair dismissal.

If the change is fundamental and the employee resigns as a result, that is basically the definition of constructive dismissal.

Anyway. Not here to argue. We don't even know what the changes are being discussed, and they might only be very minor. But if the OP wants some more info, here would be a useful starting point: http://www.acas.org.uk/media/pdf/q/k/Varying-a-contract-of-employment-Acas-leaflet.pdf

Gavin83

sangie595 wrote: »

Sorry, but your law is wrong. The employer is permitted in law to impose new conditions, and if you refuse them, you are resigning. So you have no rights under "the current contract", which I very much doubt says "if we change your terms and you don't like it, then we will sack you".

It is very simple. They tell you what the new terms are. You accept them and/ or continue working (which is the same thing).You don't accept them and you have resigned. It is the rare circumstance where you can resign and claim unfair dismissal. But if the employer has anything about them, you won't win it.

Other than that, as others have said, you have answered your own question. It's discretionary. So it's discretionary. You obviously seem to intend to resign - so I wouldn't, in your position, depend on having that money.

Then what would be the point of contracts in the first place? If what you said was true redundancy also wouldn't exist. All a company would have to do it take a group of employees all earning £80k a year, knock their salaries down to minimum wage all doing 16 hours a week and if they don't like it they'll be seen as resigning. Doesn't work.

I think it depends on what is being changed (minor changes I'd imagine are ok) but I know several people who have had major revisions, pay reductions, relocations, etc and the company has certainly had to offer redundancy as part of the changes. The OP hasn't specified this.