Change in the workplace can be positive when it is managed lawfully and communicated clearly, but it can also lead to conflict if handled poorly. Employers should consult workers about proposed changes and understand the rights workers have when their roles, terms or working arrangements are affected. Effective consultation can improve working relationships, reduce resistance to change and help employers make better decisions. In some situations, consultation is not optional and must be carried out to meet legal requirements.
Section A: Consultation
Consultation is a key part of managing change at work. Employers should understand when consultation is required, how it should be carried out and what rights workers have during the process. This includes consulting directly with workers or through recognised trade unions or elected worker representatives where applicable.
Section B: Changes to employment contracts
Changing terms and conditions of employment can be legally complex. Employers and workers should understand how contractual changes can be agreed, when consent is required and the risks of imposing changes without agreement. Poorly managed changes can lead to disputes, grievances or claims.
Section C: TUPE transfers
TUPE applies when a business or service provision changes hands. The Transfer of Undertakings (Protection of Employment) regulations protect workers’ jobs and terms and impose strict duties on employers to inform and consult affected employees. Employers must understand when TUPE applies and how to manage the transfer process lawfully.
FAQs
1. When is consultation legally required?
Consultation is required by law in certain situations, including collective redundancies, TUPE transfers and where trade union recognition applies. Even where not legally required, consultation is often good practice.
2. Who should employers consult with?
Employers may need to consult directly with workers, with recognised trade unions or with elected worker representatives, depending on the circumstances and legal requirements.
3. Can an employer change employment contracts without agreement?
In most cases, changes to contractual terms require the worker’s agreement. Imposing changes without consent can lead to breach of contract or unfair dismissal claims.
4. What happens if TUPE applies?
If TUPE applies, employees usually transfer automatically to the new employer with their existing terms and continuity of employment preserved.
5. What are the risks of failing to consult?
Failing to consult where required can result in tribunal claims, protective awards and damage to employee relations.
Conclusion
Consultation and change are central to effective workforce management. Employers who understand when consultation is required, communicate openly and respect workers’ rights are better placed to implement change successfully and lawfully. The topics above signpost the key legal considerations employers must address when managing workplace change.
Glossary
| Term | Meaning |
|---|---|
| Consultation | The process of seeking views and engaging with workers before making workplace decisions |
| Worker representatives | Individuals elected or appointed to represent workers during consultation |
| Trade union recognition | Formal recognition of a trade union for collective bargaining and consultation |
| Variation of contract | A change to the terms and conditions of an employment contract |
| TUPE | Regulations protecting employees when a business or service transfers to a new employer |
| Protective award | Compensation ordered by a tribunal for failure to consult in certain situations |
Useful links
| Resource | Description |
|---|---|
| GOV.UK – Consultation and negotiation | Overview of employer duties to consult with workers |
| GOV.UK – Changing an employment contract | Guidance on varying terms and conditions lawfully |
| GOV.UK – Transfers and takeovers (TUPE) | Guidance on when TUPE applies and employer obligations |
| ACAS – Consultation and negotiation | Practical advice on consulting workers and representatives |
| ACAS – TUPE | Employer guidance on managing TUPE transfers |
