You may have read of a recent case where Asda showed they had the right to unilaterally change the pay of their staff.

The purpose of this note is to warn you against planning a similar action without having the necessary provisions in your contracts and without consulting with affected employees.

In this case, (Ms D Bateman and Others v Asda Stores Ltd), Asda relied on a clause in their staff handbook which, they said, permitted them to make changes to their terms and conditions of employment. Asda wished to ensure that their entire store staff were employed on the same pay and work structure and this meant that those on the old regime had to transfer to a new regime. There had been extensive consultation with employees, the majority of whom agreed to the changes but some did not. When the changes were imposed, 6 test claimants brought claims of unauthorised deductions from wages to an Employment Tribunal.

Asda defended the claim and won. When the employees complained to an employment Appeal Tribunal, their appeal was dismissed.

Asda’s staff handbook contained a carefully worded clause which allowed it to make changes to the pay and work regimes of its staff without further consent. The Employment Appeal Tribunal considered the background to the matter, the element of trust and confidence in the employer/employee relationship as well as the construction of the specific clause in question. They considered the meaning of every word and every comma in detail.

This case does not give other employers a unilateral right to change the terms and conditions of its employees. The general position remains that contracts of employment can only be varied by agreement. (Wandsworth London Borough Council V D’Silva)

If you would like us to review the wording of your staff handbook to ensure that it contains all the provisions upon which you might need to rely as you steer your business through the still fragile recovery, please contact Andrew Koffman on ark@salehs.co.uk or Linda Saleh on ls@salehs.co.uk