In an attempt to ensure that all staff were employed on the same pay and work structure, Asda recently transferred a number of store workers from an old set of pay and conditions to a new regime. While most of its employees agreed to the changes, some did not, and six test claimants brought claims for unauthorised deductions from their wages under section 13 of the Employment Rights Act 1996.

Throughout the case, Asda argued that they were within their rights to bring in the new conditions because it was stated in the staff handbook that Asda reserved the right to review, revise, amend or replace the contents of the handbook from time to time in order to accommodate the changing needs of the business.

The Employment Appeal Tribunal (EAT) found that if an employer holds a broad contractual right to change the terms and conditions of employment to reflect changing business needs, they can make unilateral changes to their employee’s terms and conditions without seeking the express consent of the employees, so long as the changes are implemented properly and the employer maintain its duty of trust to its workers.

Before the contractual changes were implemented, Asda carried out an extensive consultation exercise with its entire staff over the proposed changes. Had these steps not been taken, it is possible that the EAT would have found in favour of the claimants rather than the respondent.

This case highlights the need for employers who wish to alter the contracts of their staff to have a clear and unambiguous policy in place for making such changes, including a comprehensive consultation procedure involving all affected employees.

Technorati Tags: Asda Workers, Contractual Terms, Employment Rights Act