BEIS has published a draft Code of Practice on Dismissal and Re-engagement.
The Code is designed to set out good industrial practice when employers need to negotiate/impose changes to terms and conditions. Failure to comply with the Code will be taken into account in any unfair dismissal claim (if the employer dismisses those who do not agree to contractual changes) and an unreasonable failure to comply can result in an uplift to any award of up to 25%.
In addition to the obvious requirements for full, meaningful consultation with the workforce and/or unions, the Code recommends that if agreement cannot be reached over changes to terms and conditions, the employer actively re-examines its business strategy in light of the potentially serious consequences for employees. It also includes recommendations for sharing information (which, currently, only applies when collective consultation obligations are triggered).
It further recommends that if multiple changes to terms and conditions are sought, they should be implemented (where possible) over a period of time, and that the need for that change be kept under review so that original terms might be re-introduced if the original reason for changing the terms ceases to be relevant.
The draft Code is detailed and is likely to help employees resist, or at least slow down, the process by which less scrupulous employers can impose new terms in haste by threatening to dismiss and re-engage.
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