Reducing Hours of Work (Pay) in a Shift Pattern

Evie1 · PayPerShop Newbie Joined: 20 Feb 2008 Posts: 1

I would be grateful if someone could give me their views/advice on the following:

The company I work for operate a three-shift working pattern for the production staff. All production staff are hourly paid and have a contract of employment stating which shift pattern they are working and the hours of that shift pattern. There is a clause in the contract stating that the company reserves the right to amend the shift pattern and/or transfer employees between shifts depending on business needs. All employees also accrue hours worked over their contractual hours in a Working Time Account. These hours can be offset against days off or can be paid.

For the last year, hours of work have always been to the hours shown on the shift pattern or more (thus accruing WTA hours). However, we are now is a position that due to business (customer) requirements, the shifts are working less hours than their contractual hours.

We are continuing to pay them for the full shift hours, however, I believe this is not a short term issue, but the reduced hours will continue.

Although the contracts state 'varying the shift pattern' there is no clause stating we can also reduce the hours of work and pay according to business requirements and I am sure this is what our MD will want to happen.

Could we issue an update to individual T&C's with a clause regarding reduced hours/pay? What would be the impact if an employee doesn't wish to agree?

This is a new situation for the company to be in, as it was never anticipated that hours worked would be less than the hours shown on the shift pattern!

I really look forward to hearing your advice/views on the above.

Many thanks
Evie

Ian Whyteside

Evie,

Welcome to the forum and thanks for posting the query you have. In Ian Congreave's absence I thought I would let you have a response to get things going and I hope that many others will come in now and let you have the benefit of their skills and knowledge.

As soon as Ian is back, I am merely the sorcerer's apprentice, I am certain he will have much to say on this one.

The first thing to say is that as your employees have terms and conditions which specify the contractual hours, i.e. the minimum working time, then they have to paid this amount at least and it cannot be varied except by a proper contract variation.

You would do well to examine the details of the Bruce & others v Wiggins Teape (Stationery) Ltd, a 1994 Employment Appeals case on the reduction of a premium payment which was paid to certain employees in order to satisfy customer demand. The courts decided that the arbitrary removal of the special premium without consultation amounted to an unlawful deduction from pay and the employees had to be compensated.

The answer is to renegotiate the contracts and as long as this is done properly and with due process the end result should be the preservation of employment for most, if not all of the existing employees but at a cost which matches the income for the company.

Remember that in order for this to happen successfully you must negotiate either with employee representatives or with each one individually. The law allows an agreement with an official representative to stand even if some employees do not agree with it. Employers are not expected to pander to each and every need if there is a representative who has been appointed by the workforce. Indeed the law is changing from April 2008 if the company has 50 or more employee and this will increase the need for formal consultation and information agreements.

An excellent place to go for practical advice on this issue is Business Link and an example of their guidance on failing to agree on changes to terms and conditions can be found by using this link http://www.businesslink.gov.uk/bdotg/action/detail?r.l1=1073858787&r.l3=1074003264&r.t=RESOURCES&type=RESOURCES&itemId=1073792215&r.i=1073792216&r.l2=1074428798&r.s=sc

There is further advice on changing terms and conditions and on employee representatives. Further to this you may find it useful to speak to one of their advisers.

Above all it would not be in your employers interest to make an arbitrary change to pay and terms and even though it is costing the company to maintain hours and pay that is not covered by income in the long term going about it the right way will be much more cost effective.

Ian Whyteside