Help with changing contract...
Discussion
Just a quickie...
I recently cut a permanent member of staff's hours in my establishment (so we have them working 30 odd weeks of the year rather than 52 weeks of the year) gave them required notice and set about to write confirmation letter, but when I ask my boss how I work out the wages he said, just put them on a casual/temp contract.
I have not yet done this, as it doesnt seem right to take the perm contract away from them and give them a temp contract, are employers allowed to do this?
I recently cut a permanent member of staff's hours in my establishment (so we have them working 30 odd weeks of the year rather than 52 weeks of the year) gave them required notice and set about to write confirmation letter, but when I ask my boss how I work out the wages he said, just put them on a casual/temp contract.
I have not yet done this, as it doesnt seem right to take the perm contract away from them and give them a temp contract, are employers allowed to do this?
The short answer is that this course is not a wise path.
Long answer is that to remove their permanent contract you would be making them redundant. For this you would first have to justify why the position is now redundant, this would be difficult if you were then going to re-employ them on a temporary contract. The justification is necessary otherwise the employee could take the company to an employment tribunal for unfair dismissal. If you could justify the redundancy then you would have to pay statutory redundancy and other statutory provisions etc.
Then you have to consider the temporary contract. In todays employment terms, a temporary contract ceases to be temporary if it lasts for 12 months or more. After 12 months they attain the same rights and protection as a permament member of staff. In fact if a temp contract lasts for 24 months then the employee is also entitled to redundancy on termination.
Long answer is that to remove their permanent contract you would be making them redundant. For this you would first have to justify why the position is now redundant, this would be difficult if you were then going to re-employ them on a temporary contract. The justification is necessary otherwise the employee could take the company to an employment tribunal for unfair dismissal. If you could justify the redundancy then you would have to pay statutory redundancy and other statutory provisions etc.
Then you have to consider the temporary contract. In todays employment terms, a temporary contract ceases to be temporary if it lasts for 12 months or more. After 12 months they attain the same rights and protection as a permament member of staff. In fact if a temp contract lasts for 24 months then the employee is also entitled to redundancy on termination.
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