Contract change and collective consultation

In workplaces with a recognised union, contract changes should occur through collective bargaining (see Chapter 6).

If no union is recognised, there may be rights to consultation about proposed contract change under the Information andConsultation Regulations 2004 (ICE 2004). Since April 2005, these regulations have required UK employers in all workplaces with 50 or more employees to establish consultation bodies for the information and consultation of employees (known as ICE) if 10% of the workforce requests it. The ICE is the body through which the employer should consult with reps on the situation, structure and probable development of employment and future job plans.

In addition, any fundamental change proposed to the terms and conditions of twenty or more employees within a 90-day period will trigger the obligation to consult collectively under section 188 of the Trade Union and Labour Relations Consolidation Act 1992 (GMB v Man Truck and Bus UK Ltd EAT/971/99 ([2000] IRLR 636). This includes the dismissal of employees and their re-engagement on new terms. Failure to consult collectively will result in liability for a protective award.

There are also separate statutory obligations under regulation 13 of the Transfer of Undertaking Protection of Employment Regulations 2006 (TUPE) to consult collectively. See Chapter 8.