What happens if an employee refuses to accept a proposed change to their contract?

In most cases, an employer cannot simply impose a contractual change on an employee without their agreement. Where an employee refuses to accept a proposed change, the employer will need to consider its options, which may include continuing with the existing contract, negotiating an alternative arrangement, or withdrawing the proposal.

Under the Act's new restrictions on fire and rehire, it will usually be automatically unfair to dismiss an employee for refusing to accept certain changes to key contractual terms, such as pay, pensions, working hours, shift patterns or leave entitlements.

There is a narrow exception where the employer can show financial difficulties affecting, or likely in the immediate future to affect, the organisation’s viability; that the change is intended to eliminate, prevent or significantly reduce or mitigate those difficulties; and that the need for dismissal could not reasonably have been avoided.

Employees who believe they have been treated unfairly for refusing a contractual change may be able to bring a claim to an employment tribunal. They should seek advice from their union as early as possible.

What this means for union reps

• Members should not assume they must automatically accept proposed changes to their terms and conditions.
• Reps may be asked to support members who are concerned about contractual changes affecting pay, hours, pensions, shifts or other key terms.
• Early engagement with the employer may help identify alternatives and avoid disputes.
• Where an employer threatens dismissal or seeks to impose changes without agreement, reps should seek advice from their union and ensure members understand their rights before taking any action.