Layoff as an 'implied term'

Hi not strictly related to redundancy, but I think most likely this is a precursor to it happening. I have been with my employer for around 10 years now and they have asked me to sign a new contract as the company name is changing to LTD. within this new contract are several thing I disagree with one of which is an unpaid layoff clause, I brought this to my employers attention that I won't be willing to sign this clause as it's never been in any verbal agreements of the past. My employer has implied its either sign or your out and its not changing my contract as it is an implied term in all verbal contracts...Is this true? I feel it is a major change to my current situation of no written contract and whilst i'm happy to sign a contract, i'm not prepared to sign away my rights. Any advice?


  • It is not an implied term in all verbal contracts.  If you work in a sector where unpaid lay off is the norm then it could be an implied term.  It might be worth giving the Acas helpline a ring to find out what process your employer should follow if they want to amend your contract.  They can also talk you through your options. 
  • I work in retail, so I don't think layoffs are normal practice, certainly in the last 35 years ive worked in Ive never been layed off or had a clause allowing it in my contract.
  • getmore4less
    getmore4less Posts: 46,882
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    Are they  currently a ltd company?

    if this is just a name change then  why the need for new contracts?

    if it is a change of employer to a new ltd company this would set alarm bells.
  • Just a name change . same old never present employers. They claim the new contracts are 'just to make everything official'. Everything except the contracts is still in the old company name
  • lincroft1710
    lincroft1710 Posts: 17,450
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    If you didn't sign and continued working there it would be deemed that you had accepted the new contract.

    Yes I know, damned if you do and damned if you don't.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • Yeh I spoke to ACAS and they pretty much said my rights are very limited and companies nearly always win at tribunal stage in cases like these. I will decide whether or not to sign in the next few days. If I do then its time to work to rule only for me, no more skipping breaks or going in unpaid to help out.
  • They also have the option to dismiss you for some other substantial reason and then re engage you on their new contract. If you decline then you are dismissed basically so yes, bit rubbish but it is what it is. If you aren't happy with those terms then consider looking elsewhere when the time is right!
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    7thhouse said:
    Just a name change . same old never present employers. 
    Incorporating into a Limited Company is far more than just a name change. 
  • getmore4less
    getmore4less Posts: 46,882
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    Already asked if Ltd and this is just a name change 

    Answer was just a name change. 
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