This is a preview. To continue reading, register for free access now. Register now or Log in

How to change the pay method for employees

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

Be aware that a change to the method of pay will be a variation in the terms of the employment contract and cannot therefore be imposed unilaterally.
Plan a strategy at the outset of the exercise, in particular if it may be necessary to dismiss and re-engage employees to impose the change to their contracts.
Understand that the change may be void if it is necessary to harmonise terms between two groups of employees following a TUPE transfer.
Consider the impact on employees of the proposed change and how to mitigate this.
Set out clear and legitimate business reasons for the change and explain these to the employees.
Secure the written agreement of each employee to the change.
If the strategy includes dismissal and an offer of re-engagement to any employee who refuses to agree to the change, comply with the statutory code of practice on dismissal and re-engagement.
Comply with the duty to consult with employee representatives if dismissing and re-engaging 20 or more employees.