Change of Contract of Employment. HELP!

Right, need some help here folks.

Its not about me, but rather one of my colleagues.

Our firm has recently issued a memo around indicating that they are changing our sick pay allowance. They've asked us to sign if we agree. The change takes place with effect from 6th April.

My colleague has had loads of time off sick and isnt overly impressed by the new conditions so hes refused to sign the contract, effectively resigning from his post as of 6th April.

Hes going on and on about how hes going to sign on the dole and claim all these benefits. However i think that hes going to struggle.

The reason being that as hes not been forced out of his position, he is "resigning" therefore is unable to claim benefits. I spoke to the benefits office this morning and the girl i spoke to (not the brightest crayon in the box), said that she wasnt sure.. but she beleived that what i suspected was true. She also said that if he WAS able to claim, it would only be after a set period of time, normally 5-6 weeks.

Can anyone confirm the situation?

Ben is a good worker and has loads of potential and im trying to stop him from making a rash decision in the heat of the moment. Hes still got a chance to sign the new terms of employment, as the company realises his contribution and doesnt want to lose him, but at the same time, they are not willing to back down over their change of contract.

HISTORY

We have been trading for 2 years now and are looking at expanding into america in the next Quarter. Therefore money is of the upmost importance to the company.

The other benefits we get are well above the average for the city. £18k basic, £24k OTE, 25 days paid holiday plus 8 bank holiday. Staff bonus scheme, loyalty scheme (those who started at the firm in the first 12 months of it trading are up for a massive bonus providing our shares hit a certain price within 5 years (4 years time for Ben now).

Ben himself has admitted that there are no jobs in the area which can compete with the package we have here, nor the environment in which we work.

Please can someone confirm if Ben will be able to sign on immediately after "resigning" from his position or not.

Many Thanks.

[fizzwheel]

Not stricly related but....

I got presented with a new contract a while ago. It changed my notice period from 1 month to 3, I refused to sign it as I dont want to be tied down to having to give 3 months notice. I told my line manager why I didnt want to sign it and he said no more.

6 Months later I got a letter from HR saying that as I hadnt signed the contract but continued to work I had effectively accepted the contract change and that it was binding.

Surely this kind of cirumstance is relevant to your colleague ? Have you asked your HR department what happens if you dont sign ? if its as above. Then hes got 6 months to find another job if he doesnt like the new T & C's of this contract then he doesnt need to sign on at all

I think you're right though he wont be entitled to anything for IIRC at least 6 weeks, maybe 12 weeks as effectively he's resigned and not been sacked.

I could of course be talking complete rubbish.

So why is he refusing to sign? Is he expecting to be ill again?

Surely working with the possiblity of being ill and not being paid is better than putting yourself out of work and not getting paid

Originally Posted by mysteryjimbo

So why is he refusing to sign? Is he expecting to be ill again?

Surely working with the possiblity of being ill and not being paid is better than putting yourself out of work and not getting paid

Exactly my argument Jimbo.

But he doesnt see it that way. He keeps arguing that at his age (2 he expects to have full sick pay as a benefit. I explained that employers dont have any obligation to give you ANY sick pay... and that anything you get, however little - is a benefit.

And yeah... he LOVES his sick pay. Hes probably had 1.5 months off since january. but what he does when hes here is good quality work - hits his targets etc. I dont know if hes off sick for a reason (medical condition) or just skiving.

[anna]

dont know very much about this subject but perhaps the CAB will be able to help further

I don't have a comprehensive understanding of employement law.... but can they force him to sign the new contract, if he already undertook the signing of his existing contract?

Unless his current contract expires on April 6, I wouldn't have thought they can make himredundant? Not sure though.

[fizzwheel]

If he produces legit Dr's sick notes theres not alot your company can do.

What would your new sick entitlement be on the new contract ?

TBH if I were you I'd just tell him its not your problem and that he needs to take it up with HR or the citizens advice bureau and wash your hands of it.

Originally Posted by fizzwheel

Not stricly related but....

I got presented with a new contract a while ago. It changed my notice period from 1 month to 3, I refused to sign it as I dont want to be tied down to having to give 3 months notice. I told my line manager why I didnt want to sign it and he said no more.

6 Months later I got a letter from HR saying that as I hadnt signed the contract but continued to work I had effectively accepted the contract change and that it was binding.

Surely this kind of cirumstance is relevant to your colleague ? Have you asked your HR department what happens if you dont sign ? if its as above. Then hes got 6 months to find another job if he doesnt like the new T & C's of this contract then he doesnt need to sign on at all

I think you're right though he wont be entitled to anything for IIRC at least 6 weeks, maybe 12 weeks as effectively he's resigned and not been sacked.

I could of course be talking complete rubbish.

Its whats happened to us Fizz.

The contract we signed when we started said something similar to what we have been put on now. But the company had never honoured the contract, they had always just paid full sick pay - and as such, it became "Custom and practice" and as such they had effectively changed our contracts to be that we were getting "full sick pay". As America gets closer, they need to cut back on expenditure, so they issued an amendment to the contract to take it back to what it said in our initial contracts.

Problem being, Ben had got used to having a full sickness package and a change back to the original contract annoyed him.

Begs the question, why did he sign the initial contract? If the terms arent acceptable now, why were they then?

Originally Posted by akbarhussain

I don't have a comprehensive understanding of employement law.... but can they force him to sign the new contract, if he already undertook the signing of his existing contract?

Unless his current contract expires on April 6, I wouldn't have thought they can make himredundant? Not sure though.

Thats it, they arent making him redundant. The jobs still there. And they dont want to lose him, however they are also steamlining in readiness for Q106.

They cant force him to sign the new amendment. But by his refusal to sign, he is effectively resigning, as the company are still offering him his job. Hes just choosing not to accept it. Therefore, he wont be able to claim benefits if he quits.

[fizzwheel]

Personally I dont think he has a leg to stand on. If he leaves then the beneifts agency will take that as "resigning" and he wont get any help whatsoever I think....

Just let him get on with it and let him do what he wants to do. Sounds like whatever you tell him it wont be what he wants to hear.