What consultation requirements will apply before employers can change terms and conditions?

The Act does not remove the need for employers to consult and seek agreement before making significant changes to employees' terms and conditions.

Employers will generally still be expected to explain the reasons for proposed changes, provide relevant information, consult with affected employees and, where applicable, engage with recognised trade unions or employee representatives. The aim should be to reach agreement rather than impose changes unilaterally.

Where an employer proposes dismissing and re-engaging employees who do not agree to contractual changes, the new restrictions on fire and rehire mean that consultation and negotiation will become even more important. Employers will need to consider alternatives and demonstrate why any proposed changes are necessary.

Existing collective consultation requirements will also continue to apply where an employer proposes dismissing 20 or more employees at one establishment within a 90-day period. In these circumstances, employers must consult appropriate representatives, which may include recognised trade unions.

What this means for union reps

• Reps should expect to be involved at an early stage where employers propose significant changes to terms and conditions.
• Consultation should be a genuine process aimed at reaching agreement, not simply informing workers that a decision has already been made.
• Employers may find it more difficult to rely on fire and rehire where they have not meaningfully explored alternatives or engaged with workers and unions.
• Reps should seek support from their union where proposed changes could affect pay, hours, pensions, leave or other important contractual terms, and ensure members are kept informed throughout the process.