Kathryn Beck, employment law specialist, partner, Swarbrick Beck Mackinnon, says there are benefits in having a workforce with flexibility.
How should I first broach the subject that I would like to change hours and pay due to the needs of the business?
The first thing to understand is that in most circumstances, hours, and almost always pay, is a term of an employee's employment. This means that it
can't just be changed by an employer after a process of consultation.
It can only be changed by agreement.
Arrange a meeting. Set the scene - start with giving them information about the company's situation. Provide a picture that will help them understand why you are about to ask them to take a drop in their take home pay. Have you lost a client? Are sales down? Is the bank requiring reduction of costs? If you don't do something, what might happen? Redundancies, closing the business for instance. You want them to understand that the alternative to agreeing to what you are about to propose could be worse for everybody. Then outline what you are proposing. What exactly are you looking for and for how long? Acknowledge that it is a big ask and that you wouldn't be doing it if there was any other way. Let them know that you are not asking them to respond or agree to anything now. The purpose of this meeting is to explain the situation, put the proposal and then set out what the next steps might be.
How do I work with staff so that we come up with a result that benefits all?
Invite them to put forward any other ideas as to what you can do to address the situation. You may be surprised by the innovative ideas that come forward. Remember that they are the ones doing the job and there may be solutions/opportunities that they see that haven't occurred to you.
Should I provide staff with a legal expert so that they feel they are getting a fair deal?
Set a date for them to come back with a response. Make sure that they know they can come to you to ask questions or get clarification. You should also tell them that they may want to get independent advice. It is up to you whether you offer to pay for that advice. This would be seen as a good faith gesture and may also assist to move things along. From this point, it is a matter of negotiation.
If you reach an agreement it must be recorded in writing.
What do I do if staff refuse and threaten to give notice?
You cannot threaten to dismiss someone if they do not agree to change. However, you can advise that the alternative is likely to be redundancies or even closure.
Because you are not forcing this on people - remember, you are seeking their agreement - there should be no reason for them to resign even if they do not like what you are asking.
How do I keep the door open for returning to the normal 40 hour week when the good times return?
Put in a review date or dates. Ideally, record that after consultation and on a certain amount of notice, you can increase the hours again.
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